Quarterly Report • Aug 14, 2013
Quarterly Report
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Interim Group Report for the fi rst half-year and the second quarter 2013
| All fi gures in € million | 2nd quarter 2013 | 2nd quarter 20121 | 1st half-year 2013 | 1st half-year 20121 | Change |
|---|---|---|---|---|---|
| MLP Group | |||||
| Total revenue | 107.9 | 112.2 | 224.3 | 233.7 | – 4.0 % |
| Revenue | 103.7 | 105.9 | 216.0 | 222.2 | – 2.8 % |
| Other revenue | 4.2 | 6.3 | 8.3 | 11.5 | 27.8 % |
| Earnings before interest and tax (EBIT) | 0.9 | 3.1 | 4.9 | 15.4 | – 67.9 % |
| EBIT margin (%) | 0.8 % | 2.8 % | 2.2 % | 6.6 % | – |
| Net profi t | 1.1 | 0.9 | 4.2 | 10.4 | – 59.3 % |
| Earnings per share (diluted) in € | 0.01 | 0.01 | 0.04 | 0.10 | – 60,0% |
| Cash fl ow from operating activities | 9.8 | – 5.0 | 72.7 | 31.2 | >100 % |
| Capital expenditure | 4.6 | 3.2 | 9.5 | 7.5 | 27.4 % |
| Shareholders' equity | – | – | 352.9 | 384.22 | – 8.1 % |
| Equity ratio | – | – | 24.0 % | 25.7 %2 | – |
| Balance sheet total | – | – | 1,472.6 | 1,493,52 | – 1.4 % |
| Clients | – | – | 821,000 | 816.2002 | 0.6 % |
| Consultants | – | – | 2,012 | 2,0762 | – 3.1 % |
| Branch offi ces | – | – | 169 | 174 | – 2.9 % |
| Employees | – | – | 1,558 | 1,528 | 2.0 % |
| Arranged new business | |||||
| Old-age provisions (premium sum in € billion) | 0.7 | 0.7 | 1.3 | 1.4 | – 7.1 % |
| Loans and mortgages | 436,8 | 297,7 | 798,1 | 628,1 | 27.1 % |
| Assets under management in € billion | – | – | 22.7 | 21.22 | 7.1 % |
Previous year's fi gures adjusted. The adjustments are disclosed under Note 3.
[Table 01]
2 As of December 31, 2012.
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 from insurance companies, banks and investment fi rms. The MLP Group manages total assets of more than € 22 billion and supports more than 82o,ooo private and 5,ooo corporate clients or employers. 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 provision, wealth management, health insurance, non-life insurance, loans and mortgages and banking. Private individuals with assets of over € 5 million and institutional clients benefi t from extensive wealth management and consulting services as well as receiving economic forecasts and ratings provided by the subsidiaries of the Feri Group. Supported by its subsidiary TPC, MLP also provides companies with independent consulting and conceptual services in all issues pertaining to occupational pension schemes and remuneration as well as asset and risk management.
The values disclosed in the following management report have been rounded to one decimal place. As a result, differences to reported total amounts may arise when adding up the individual values .
The previous year's fi gures have been amended in the income statement, the balance sheet and the following tables. An explanation is provided in Note 3.
Compared to neighbouring European states the German economy expanded by a relatively robust o.7 % in 2o12 and continued to grow slightly in the fi rst two quarters of 2o13. Following growth of o.1 % in the fi rst quarter, experts predict a rise in German economic output of o.5 % for the second quarter. This development was supported, in particular, by the expansion of industrial production and construction investment as well as by continuingly strong consumption.
After a weaker winter half-year the labour market improved again, albeit with decreasing momentum. Figures released by the Federal Employment Agency show that the unemployment rate fell to 6.6 % in June, having stood at 7.3 % in March. This comparatively favourable development on the labour market as well as the high wage settlements underpin the continuingly high consumption expenditure, which according to the DIW (German Institute for Economic Research) will also play an important role in further growth in 2o13.
In the MLP Group, which generates a very large portion of its revenue in Germany, the slight economic growth in the fi rst-half year had no positive effect on the business development.
The restrained start to the new fi nancial year led to falls in revenue in old-age provision and health insurance. However, the Wealth Management consulting area continued to achieve signifi cant growth.
The market for old-age provision in Germany remains characterised by considerable hesitancy. The combined effects of the persisting debt crisis, historically low interest rates and volatile equity markets are creating a diffi cult market environment. Despite awareness of the demographic development and the resultant necessity for private provision in preparation for retirement, many German citizens are still hesitant in building up their pension plans. According to a survey conducted by Forsa, only one in three of respondents considered that they would be able to maintain their standard of living in their old-age – and 6o % of citizens expect that they will need to forgo many things, or will have to manage without certain things, in their retirement years (see chart).
[Figure 02]
Although the Forsa survey revealed that a total of 52 % of savers invest in old-age provision, only 36 % of young adults (18 to 29 years of age) utilise products from this sector. The study also documents the uncertainty of investors: for almost three quarters of those surveyed, security is of paramount importance. The diffi cult framework conditions are also refl ected in the market development for Riester pensions. For the fi rst time since the introduction of this state-subsidised provision option, the number of contracts in a quarter declined. According to statistics published by the Federal Ministry of Labour and Social Affairs, the number of Riester contracts decreased by o.2 % in the fi rst quarter 2o13.
In addition to these generally diffi cult framework conditions, the changeover to unisex tariffs also had a negative impact on the business development in the fi rst half-year – as, particularly in the fi rst quarter, consultants throughout the industry had to fi rst familiarise themselves with the new tariff landscape.
In this continuingly challenging market environment MLP achieved a premium sum of € 1.3 billion during the period from January to June 2o13 which was lower than the previous year (€ 1.4 billion). Here, occupational pension provision continues to gain in importance – in their competitive efforts to secure the services of specialised staff, companies are increasingly using this option as an incentive in order to retain existing employees over the longer term or to attract new candidates to join their organisations. In the fi rst half-year occupational pensions business at MLP accounted for 13 % (12 %) of the premium sum. In cooperation with our subsidiary TPC (THE PENSION CONSULTANCY GmbH) we were thus able to continue this successful business development.
Many citizens remain rather sceptical of the future scope of services and benefi ts that will be provided by the statutory healthcare system. According to a recent study conducted by TNS Emnid, more than 20 million individuals with statutory health insurance would prefer to switch to private healthcare insurance. However, for many of the respondents, such a move is not possible as they do not fulfi l the minimum income requirements.
On the other hand the public discussion about the future of private health insurance is having a negative impact on the market. In the run up to the German parliamentary elections this debate is largely driven by proposals from the opposition parties to introduce a so-called "citizens insurance" (Bürgerversicherung). The analysis fi rm Bain & Company states that public perception of private health insurance reached a historical low level.
In the fi rst half-year 2o13 there was an increase in the level of public awareness of the topic of long-term care provision. A survey conducted by Allianz Deutschland AG revealed that only 12.o % of respondents considered the risk of they themselves or of their relatives requiring long-term care as being low. More than a third were afraid of their prospective need for longterm care, 23.o % were concerned about poverty and social decline. They estimated the monthly funding gap between actual requirements and the cover provided by the long-term nursing care insurance to be € 1,3oo. According to current calculations by the Federal Ministry of Health, the number of citizens requiring long-term nursing care is forecasted to rise continuously and reach 4.23 million in 2o5o – an increase of 68.o % compared to the present situation (see chart). Even now, already one in three people over the age of 8o are dependent on nursing care.
In view of the diffi cult framework conditions in private health insurance MLP recorded a fall in this consulting area in the period under review. Revenue in the fi rst six months amounted to € 25.6 million and thus remained around 19.5 % below the same period of the previous year (€ 31.8 million).
In the period from January to June 2o13 the German investment fund industry continued to register high inflows. According to figures released by the German Investment Funds Association (BVI) net infl ows in this period amounted to € 41.o billion and thus signifi cantly exceeded the volume achieved in the same period of the previous year (€ 25.1 billion). Special funds once again generated the largest increase. Here, institutional investors invested € 32.6 billion. In the retail fund sector, which took in € 1o.6 billion of new monies since the start of the year, fi xed income funds remained the investors' preferred option and accounted for € 7.4 billion, followed by mixed funds which attracted € 5.8 billion of new monies in the same period. Open-ended real estate funds achieved a net gain of € 3.0 billion. In the same period, equity funds recorded outfl ows of € 2.1 billion, once again demonstrating the continuingly safety-oriented focus of many investors. Assets outside of investment funds decreased by € 2.2 billion.
In the fi rst half-year of this year managed client assets at MLP also developed positively, rising to € 22.7 billion at June 3o, 2o13. (December 31, 2o12: € 21.2 billion).
The competitive situation within the German fi nancial services market did not fundamentally change for MLP in the fi rst half-year 2o13. The industry still has a very heterogeneous structure and remains characterised by intense competitive pressure. The in-market providers include numerous banks, insurance companies and independent fi nancial intermediaries that offer varying levels of consulting quality.
In recent years the legislator instigated and implemented various regulatory changes in order to improve transparency and the quality of consulting in the market. They also have a lasting impact on the framework conditions in the current fi nancial year. In 2o11 the government passed the Investor Protection and Functionality Improvement Act (Anlegerschutz- und Funktionsverbesserungsgesetz) which, among other aspects, includes stricter training standards for investment advisors from May 2o13.
On November 1, 2o12 the Federal Financial Supervisory Authority (BaFin) introduced the new Report and Complaints Register which empowers the supervisory body to judiciously apply various sanctions even extending to the issue of temporary occupational suspension in cases of gross violation of the rules. The regulations of this legislation apply to organisations such as MLP that possess a license as a bank or a fi nancial services institute.
Further regulation steps are apparent in the revision of the Laws on Intermediaries for Financial Investments and Investment Products (Gesetz zur Novellierung des Finanzanlagenvermittler- und Vermögensanlagerechts), which, among other aspects, specifi es new training requirements for the brokerage of open and closed funds by independent intermediaries and affects the previously largely unregulated section of the market that – unlike MLP – does not fall under the jurisdiction of the Federal Banking Supervisory Authority.
In April of this year the German parliament passed the Act on Promoting and Regulating Fee-Based Advice on Financial Instruments (Honoraranlageberatungsgesetz). This new legislation only applies to investment advisory services – i.e. to fi nancial investments but not to insurance topics. Accordingly, from the middle of 2o14 the title of fee-based investment advisor or fee-based fi nancial investment advisor may only be used by those who have access to a broad product portfolio and whose fees are paid solely by the client.
We have already implemented several requirements that the legislator prescribes through regulations and view this as a competitive advantage over other market members. During the coming years additional legislation will further tighten the requirements for all market participants which, in turn, will lead to an acceleration of market consolidation (see page 101 et seq. of the Annual Report 2o12).
In the period from January to June 2o13 total revenue fell from € 233.7 million to € 224.3 million. Following the expected slight decrease in the fi rst quarter due to the strong fi nal quarter in 2o12 and the changeover to the new unisex insurance tariffs, revenue from commissions and fees in the second quarter remained slightly below MLP's expectations. After six months, revenue from commissions and fees totalled € 2o4.5 million (€ 2o8.3 million). Due to the low interest rate levels, interest income was also below the level of the previous year and amounted to € 11.5 million (€ 13.9 million). Other revenue totalled € 8.3 million (€ 11.5 million).
The revenue breakdown by consulting area shows weaker development in old-age provision and in health insurance. Both consulting areas were affected by the introduction of new unisex tariffs on December 21, 2o12 which meant that MLP consultants had to fi rst familiarise themselves with the new products. The generally diffi cult market environment was also evident in the second quarter. Especially in health insurance, many clients remain hesitant in the run-up to the German parliamentary elections in the autumn – signifi cantly infl uenced by proposals from the opposition parties seeking to introduce a citizens insurance (Bürgerversicherung). Revenue amounted to € 25.6 million and was thus 19.5 % below the corresponding fi gure of the previous year (€ 31.8 million). In old-age provision uncertainty among the general public as a consequence of the euro crisis, and the intensive discussion regarding the low interest rate environment led to hesitancy with respect to the conclusion of long-term contracts. Against this backdrop, revenue fell from € 97.4 million to € 83.5 million.
Wealth management developed very positively with revenue rising by 32.7 % to € 65.3 million (€ 49.2 million). Here the Group benefi ted both from the successful development at MLP Finanzdienstleistungen AG as well as from growth at the subsidiary Feri.
Revenue from non-life insurance amounted to € 22.5 million and thus remained at the level of the previous year (€ 22.6 million). Positive development was achieved in loans and mortgages – here revenue rose from € 5.5 million to € 6.o million; additional earnings from the joint venture company MLP Hyp amounted to € o.3 million (€ o.4 million).
When viewing the second quarter in isolation, total revenue amounted to € 1o7.9 million, falling by 3.8 % compared to the previous year (€ 112.2 million). Here, revenue from commissions and fees decreased only slightly from € 99.3 million to € 98.1 million. Against a backdrop of low interest rates, interest income also fell and amounted € 5.6 million (€ 6.6 million). Other revenue declined to € 4.2 million (€ 6.3 million) which was particularly attributable to positive one-off effects in the corresponding quarter of the previous year from the sale of a former subsidiary.
[Figure 05]
In the fi rst six months of the year the largely variable commission expenses increased from € 88.8 million to € 94.6 million. This rise resulted primarily from higher commission expenses in the Feri segment, which in turn was due to signifi cant business growth at the Luxembourg subsidiary which specialises in the administration of funds. Interest expenses reduced to € 2.9 million (€ 4.2 million) due to the current lower interest rate environment. When viewing the second quarter in isolation, revenue costs changed only slightly compared to the previous year, falling from € 47.9 million to € 46.7 million. This resulted primarily from the signifi cant revenue contribution made by the Feri fund administration business from the beginning of the second quarter 2o12.
Administration costs (defi ned as the sum of personnel expenses, depreciation and amortisation as well as other operating expenses) fell from € 125.6 million to € 122.2 million in the fi rst half-year. This fi gure already includes around € 3.5 million of the announced additional investments for the full year. In February MLP announced temporarily higher expenses of around € 8.o million for the fi nancial year 2o13 – in order to undertake important investments for the future or to relieve expenses in future years through one-off initial costs. Areas in this respect include the change of credit card processor, migration of IT systems into the Cloud, recruiting as well as further strengthening of wealth management.
Personnel expenses increased from € 49.2 million to € 52.8 million, among others due to higher expenses at Feri, some of which were one-off costs. Depreciation and amortisation fell from € 6.5 million to € 5.7 million. Other operating expenses reduced signifi cantly to € 63.7 million (€ 69.9 million) due, in part, to lower costs for IT consulting services, less expenditure on IT infrastructure as well as reduced rental costs.
In the fi rst half-year EBIT (Earnings before interest and tax) fell to € 4.9 million (€ 15.4 million). This decrease was due to lower revenue as well as to the change in revenue mix – as particularly revenues at Feri in Luxembourg lead to higher revenue costs. Furthermore, MLP has already booked around € 3.5 million of the announced additional investments. The fi nancial result fell to € o.o million (€ o.6 million) due to lower interest income. Group net profi t thus amounted to € 4.2 million (€ 1o.4 million) .
In the second quarter EBIT fell to € o.9 million (€ 3.1 million) which was primarily attributable to lower other revenue compared to the previous year. The fi nancial result decreased to € o.o million (€ o.3 million). Group net profi t totalled € 1.1 million (€ o.9 million) due to one-off tax effects.
| in € million | 1st half-year 2013 |
1st half-year 2012 |
Change |
|---|---|---|---|
| Total revenue | 224.3 | 233.7 | – 4.0 % |
| EBIT | 4.9 | 15.4 | – 68.2 % |
| EBIT margin | 2.2 % | 6.6 % | – |
| Finance costs | 0.0 | 0.6 | – 100.0 % |
| EBT | 5.0 | 16.0 | – 68.8 % |
| EBT margin | 2.2 % | 6.8 % | – |
| Income tax | – 0.7 | – 5.7 | – 87.7 % |
| Net profi t (continuing operations) | 4.2 | 10.4 | – 59.6 % |
| Net margin | 1.9 % | 4.5 % | – |
| [Table 02] |
At the start of the year we provided a quantitative forecast for the development of our EBIT (Earnings before interest and tax). Overall, for the fi nancial years 2o13 to 2o15 MLP expects EBIT to range within a corridor between € 65 million and € 78 million. Due to the announced temporarily higher expenses – in particular to make important investments in our future – we expect that EBIT for the fi nancial year 2o13 will come in at the lower end of this corridor.
We also issued a qualitative estimate for revenue development. Accordingly, MLP expects full-year revenues for 2o13 in old-age provision to stagnate or even decline slightly. In health insurance we expect to achieve revenue at the level of the fi nancial year 2012, and in wealth management we anticipate a rise in revenue.
In the fi rst half-year our estimate for wealth management has been confi rmed, with revenue rising by 32.7 % compared to the same period of the previous year. Following a strong fi nal quarter in 2o12 and due to the diffi cult market environment, revenues in old-age provision and health insurance were respectively 14.3 % and 19.5 % below the previous year. In addition, the changeover to unisex tariffs in both these consulting areas meant that our consultants had to fi rst familiarise themselves with the new products. However, from a current perspective, we are confi dent that we will see a signifi cant pick-up in both consulting areas in the second half-year. At the same time, we expect a continuation of the successful development in wealth management.
Furthermore, the development of costs ran according to plan. Overall, in view of the expected pick-up in old-age provision and in health insurance in the second half-year, our year-end target still remains achievable.
In the fi rst half-year Assets under Management further increased, rising to € 22.7 billion at June 3o (March 31, 2o13: € 21.7 billion). Due to the diffi cult market environment, the premium sum in old-age provision decreased to € 1.3 billion (€ 1.4 billion).
In the fi rst half-year 2o13 MLP welcomed 11,7oo new clients (14,2oo). The total number of clients thus climbed to 821,ooo (March 31, 2o13: 817,5oo). The number of consultants fell slightly to 2,o12 (March 31, 2o13: 2,o33).
At the balance sheet reference date on June 3o, 2o13 the total assets of the MLP Group amounted to € 1,472.6 million (€ 1,493.5 million). On the asset side of the balance sheet there were changes to primarily three items: receivables from banks from the banking business, fi nancial investments as well as other receivables and other assets. The reduction in receivables from banks from € 51o.5 million to € 467.3 million was mainly due to the profi t transfer payment from MLP Finanzdienstleistungen AG to MLP AG. This payment had a corresponding effect on the fi nancial investments which rose to € 174.1 million (€137.1 million).
Other accounts receivable and other assets reduced by € 43.6 million to € 96.1 million (€ 139.7 million). This item chiefl y contains receivables from insurers 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 | June 30, 2013 | Dec. 31, 2012 | Change |
|---|---|---|---|
| Intangible assets | 147.5 | 141.7 | 4.1 % |
| Property, plant and equipment | 66.7 | 68.8 | – 3.1 % |
| Shares accounted for using the equity method | 2.9 | 2.6 | 11.5 % |
| Deferred tax assets | 3.0 | 3.0 | 0.0 % |
| Receivables from clients in the banking business | 453.7 | 431.4 | 5.2 % |
| Receivables from banks in the banking business | 467.3 | 510.5 | – 8.5 % |
| Financial investments | 174.1 | 137.1 | 27.0 % |
| Tax refund claims | 17.9 | 7.4 | >100.0 % |
| Other receivables and other assets | 96.1 | 139.7 | – 31.2 % |
| Cash and cash equivalents | 35.9 | 40.7 | – 11.8 % |
| Assets held for sale | 7.4 | 10.5 | – 29.5 % |
| Total | 1,472.6 | 1,493.5 | – 1.4 % |
| [Table 03] |
Equity capital decreased from € 384.2 million to € 352.9 million due to the dividend payment for the fi nancial year 2o12 amounting to € 34.5 million. The equity capital position of MLP therefore continues to be good with an equity ratio of 24.o % (25.7 %).
Signifi cant changes occurred particularly in other liabilities which, compared to the year-end 2o12, reduced to € 85.1 million (€ 13o.7 million). This resulted, in part, from lower commission claims by our consultants. Due to our usually strong year-end business, the commission claims by the consultants rise sharply at the balance sheet reference date on December 31, but then fall again in the following quarters.
The positive development of our deposit business is shown in the liabilities towards clients from the banking business. These rose to € 936.9 million at June 3o (€ 871.1 million) and mainly result from an increase in deposits in current and instant access savings accounts. The decrease in accruals to € 74.8 million (€ 83.7 million) was attributable, in part, to lower cancellation risks as well as to a decrease in accruals for customer care service fees, following corresponding payment to our consultants for the fi nancial year 2o12 .
| in € million | June 30, 2013 | Dec. 31, 2012 | Change |
|---|---|---|---|
| Shareholders' equity | 352.9 | 384.2 | – 8.1 % |
| Provisions | 74.8 | 83.7 | – 10.6 % |
| Deferred tax liabilities | 8.5 | 8.5 | 0.0 % |
| Liabilities due to clients in the banking business | 936.9 | 871.1 | 7.6 % |
| Liabilities due to banks in the banking business | 9.3 | 10.5 | – 11.4% |
| Tax liabilities | 5.2 | 4.8 | 8.3 % |
| Other liabilities | 85.1 | 130.7 | – 34.9 % |
| Total | 1,472.6 | 1,493.5 | – 1.4 % |
Cash fl ow from operating activities in the fi rst half-year 2o13 increased to € 72.7 million compared to € 31.2 million in the corresponding period of the previous year. Here, the main payments result from the deposit business with our clients and from the investment of these monies.
Cash fl ow from investment activities changed from € 47.9 million to € –48.o million. During the period under review no term deposits matured, whereas in the comparative period matured fi xed deposits with a term of more than three months totalling a net € 5o.o million were not reinvested.
Cash fl ow from fi nancing activities was infl uenced by the dividend payment for the fi nancial year 2o12.
Overall, at the end of the fi rst half-year 2o13 the Group's liquid funds stood at arround € 139 million. The liquidity situation therefore remains very good and the Group has adequate liquidity reserves available. In addition to the liquid funds, MLP also has access to free credit lines .
| in € million | 2nd quarter 2013 |
2nd quarter 2012 |
1st half-year 2013 |
1st half-year 2012 |
|---|---|---|---|---|
| Cash and cash equivalents at the beginning of the period |
120.0 | 69.5 | 60.7 | 51.4 |
| Cash fl ow from operating activities | 9.8 | – 5.0 | 72.7 | 31.2 |
| Cash fl ow from investing activities | – 44.4 | 67.2 | – 48.0 | 47.9 |
| Cash fl ow from fi nancing activities | – 34.5 | – 64.7 | –34.5 | – 64.7 |
| Changes in cash and cash equivalents | –69.2 | –2.4 | –9.8 | 14.3 |
| Change in cash and cash equivalents from changes in the scope of consolidation |
0.1 | 0.0 | 0,1 | 1.4 |
| Cash and cash equivalents at the end of the period |
50.9 | 67.1 | 50.9 | 67.1 |
[Table 05]
No capital measures were undertaken during the period under review.
In the fi rst six months MLP invested € 9.5 million, a fi gure that was € 2.o million higher than the previous year's value (€ 7.5 million). Most of the investments were allocated to the fi nancial service segment, with particular focus on IT items. All investments were fi nanced from current cash fl ows.
In the fi rst half-year of 2o13 total revenue fell compared to the same period in the previous year, having been signifi cantly infl uenced by the diffi cult market environment in old-age provision and the negative public discussion about private health insurance. EBIT (Earnings before interest and tax) also decreased, corresponding to the revenue development and mix. In addition, in the fi rst half-year MLP booked around € 3.5 million of the announced temporary expenses. After conclusion of the fi rst half-year MLP still has a good equity capital base and liquidity foundation.
Although business development in the fi rst half-year remained slightly below our expectations we anticipate, from a current perspective, that we will see a signifi cant pick-up in the second half-year. We 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 the preparation of the interim report.
The number of employees in the MLP Group rose slightly during the period under review. At the reporting reference date on March 31, 2o13 MLP had a total of 1,558 employees – 3o more than a year earlier. This fi gure includes 167 temporary staff or marginal part-time employees compared to 171 in the previous year.
| June 30, 2013 | June 30, 2012 | |
|---|---|---|
| Financial Services | 1,301 | 1,268 |
| Feri | 248 | 252 |
| Holding | 9 | 8 |
| Total | 1,558 | 1,528 |
[Table 06]
In May MLP rolled out a new nationwide campaign entitled "Offene Worte zum Vermögensmanagement" (Simple truths about wealth management), designed to heighten public awareness of MLP's expertise in wealth management. The advertisements feature bold statements such as "Sparen können Sie sich oft sparen" (You can often save saving) and "Entwicklungen am Kapitalmarkt sind nicht vorhersehbar" (Developments in the capital market are unpredictable). MLP then builds on these statements by explaining its client-oriented consulting approach – with clear differentiation from the rest of the market .
The April issue of the MLP client magazine Forum also focusses on the topic of wealth accumulation. Other topics include various forms of long-term care provision and the available state subsidy, as well as the importance of personal advisory services for the selection and fi nancing of real estate. The eMagazin can be accessed at www.forum-mlp.de .
In the middle of May, and for the eighth time, MLP presented the service awards to product partners in the areas of old-age provision, health insurance and non-life insurance. In addition, the Investment Award for the wealth management domain was presented in fi ve categories. In total, MLP surveyed more than 1,7oo consultants with respect to the service quality of around fi fty insurance companies. In additional to overall satisfaction, 14 other service quality criteria were assessed including professional competence, speed and availability.
MLP's support for students also featured strongly in the second quarter. During the middle of April the next round of the "Medical Excellence" support programme for medical students was initiated. In June, and for the tenth time, the "Join the best", programme commenced which offers students the chance to gain practical experience abroad. The applications window for academics from all subject areas opened at the end of May.
At the end of the period under review the recipients of the "MINT Excellence" programme grant were selected. This initiative supports students of mathematics, information science, natural sciences and technology. Similarly to the "Medical Excellence" programme, this is an initiative of the Manfred Lautenschläger foundation while MLP is responsible for the implementation.
On March 21, 2o13 the Supervisory Board of MLP AG unanimously extended the existing service contract of Chief Financial Offi cer Reinhard Loose until January 31, 2o19. As CFO, Reinhard Loose carries responsibility for Controlling, Accounting, Risk Management as well as IT and Procurement.
During the period under review ACADEMIC NETWORKS GmbH, a wholly-owned subsidiary of MLP Finanzdienstleistungen AG was renamed MLPdialog GmbH and the corresponding change of business activity and rules of procedure were entered into the Commercial Register in Mannheim. In future, the company is intended to operate as a service centre to increasingly support our consultants. MLPdialog GmbH has been included in the scope of consolidation since June 1, 2o13. Further details are contained in Note 4.
A detailed description of the corporate structure and the executive bodies is contained on pages 38 et seq. of our Annual Report 2o12.
The MLP Group structures its business into the following operating segments:
A detailed description of the individual segments is contained on pages 65 et seq. of the Annual Report 2o12.
In the fi rst half-year 2o13 total revenue in the fi nancial services segment decreased compared to the same period of the previous year, falling from € 2oo.3 million to € 177.9 million. This reduction was mainly due to lower revenue in the old-age provision and health insurance consulting areas (see section on "Results of Operations").
Commission expenses in the fi rst six months fell from € 76.1 million to € 69.5 million due to weaker revenue development. Personnel expenses were slightly higher than the comparative period of the previous year and amounted to € 36.8 million (€ 34.9 million). Scheduled depreciation and amortisation as well as other operating expenses were each slightly below the corresponding fi gures in the previous year. EBIT (Earnings before interest and tax) amounted to € 6.3 million compared to € 16.8 million in the same period of the previous year and was due to lower revenue. The fi nancial result improved to € o.2 million (€ 0.1 million). EBT (Earnings before tax) thus amounted to € 6.4 million (€ 16.9 million).
In the second quarter total revenue decreased compared to the same period in the previous year from € 89.9 million to € 84.2 million. EBIT fell accordingly to € 1.4 million (€ 2.7 million).
In the period from January to June 2013 total revenue in the Feri segment rose by 36.2 % to € 49.3 million (€ 36.2 million), mainly due to the greater volume of business at the Luxembourg subsidiary. At the same time, commission expenses also increased, rising from € 15.1 million to € 27.4 million. Personnel expenses rose to € 14.2 million (€ 12.3 million). The additional expense was partly attributable to one-off items. Scheduled depreciation and amortisation remained at the previous year's level. EBIT amounted to € 1.3 million (€ 2.3 million). EBT totalled € 1.2 million after € 2.1 million in the previous year.
In the second quarter total revenue increased slightly to € 25.2 million (€ 23.6 million). EBIT in the second quarter amounted to € o.8 million (€ 1.9 million). This reduction was due to personnel expenses, some of which were one-off items that were higher than the same quarter of the previous year. EBT totalled € o.7 million (€ 1.8 million).
Total revenue in the Holding segment in the fi rst half year of 2o13 amounted to € 5.1 million and thus remained exactly at the level of the previous year (€ 5.1 million). Lower personnel expenses as well as lower other operating expenses led to an improvement in EBIT to € –2.5 million after € –3.6 million in the previous year. Due to lower interest income the fi nancial result decreased to € –o.1 million (€ o.6 million). EBT improved to € –2.6 million after € –3.o million in the previous year.
When viewing the second quarter in isolation, total revenue also remained around the level of the previous year and amounted to € 2.5 million (€ 2.6 million). EBIT improved to € –1.2 million (€ –1.4 million). EBT totalled € –1.3 million after € –1.2 million in the previous year.
There were no signifi cant changes in the risk situation of the MLP Group during the period under review. There were no exceptional burdens within the framework of our counterparty default risks, market price risks, liquidity risks, and operational or other risks in the second quarter 2o13. The MLP Group has adequate liquid funds. At the reporting date on June 3o, 2o13, our core capital ratio stood at 17.7 % and thus 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 74 to 94 of the Annual Report 2o12.
Related party disclosures are contained in the notes of the Annual report 2o12, page 196 et seq.
Within the framework of its spring projection, the federal government expects the German economy to grow by o.5 % in 2o13 and to achieve accelerated growth of 1.6 % in 2o14. The International Monetary Fund (IMF) takes a somewhat more pessimistic view of growth in the current fi nancial year and recently reduced its economic forecast for Germany from o.6 % to o.3 %. For next year the IMF anticipates growth of 1.6 % and justifi es its revised forecast for 2o13 with the diffi culties in the euro zone and the advancing recession in the region with negative effects on German exports. The Bundesbank recently also downgraded its forecast for the current fi nancial year from o.4 % to o.3 % and for 2o14 from 1.9 % to 1.5 %. The experts continue to see positive stimulus from private consumption. Overall, MLP does not expect any positive stimulus in the current fi nancial year from the economic development .
[Figure 09]
A detailed description of the framework conditions for our most important markets – old-age provision, health insurance and wealth management – is contained in our Annual report 2o12 on pages 96 et seq. During the fi rst six months of the fi nancial year 2o13 there were no signifi cant changes to the overall situation.
During the coming years, private and occupational pension provision will continue to be of major concern to German citizens, most of whom are already aware of the fact that the statutory pension alone will no longer be adequate to enable them to maintain their current standard of living in their retirement years. There is also a high requirement for occupational disability insurance and in the area of occupational pensions where Germany still lags considerably behind other European states. Furthermore, long-term care annuity insurance is an increasingly important area. However, in the short term, we continue to see uncertainty for the German provision market. Above all, the effects of the European debt crisis and the persistently low interest rate environment continue to cause hesitancy and restraint on the part of citizens with respect to the conclusion of long-term contracts.
In the German healthcare system, the changing demographic situation as a result of the ageing population and the associated rising costs will necessitate fundamental reforms. In the presence of reduced services and benefi ts offered by the statutory health insurance scheme, we anticipate that, also in the future, insurees will continue to seek attractive alternatives – either through a complete switch to private health insurance or by taking out supplementary private insurance. In addition we also believe that the topic of occupational health provision – similarly to occupational pension provision – will steadily gain in signifi cance during the coming years. However, in the short term, the fundamentally positive trends are being overshadowed by the negative market reporting about private health insurance. Furthermore, for the current fi nancial year we expect that, among other aspects, the introduction of the state-subsidised private longterm care insurance ("Pfl ege-Bahr") will heighten awareness of the need for adequate long-term care insurance .
Over the longer-term, demand for high quality wealth management services will rise. In its study entitled "Global Wealth 2o13" the management consultant fi rm Boston Consulting Group expects global asset fi gures to grow by almost 5 % per annum to more than US \$17o trillion by 2o17. The report predicts asset growth in Western Europe of around 3 %. In addition, very considerable account and portfolio reallocations are expected to be undertaken in the coming years: according to a study conducted by the German Institute for Old-Age Provision (DIA), around € 2.6 trillion will be inherited by private households in Germany alone by 2o2o. Overall, we expect stagnating to modest market growth in wealth management in the coming years.
Increasing regulation too is playing an important role in the future competitive situation and the on-going consolidation process. Changes instigated in recent years also have an impact on the current fi nancial year. From May 2o13 for example, the new requirements of the Investor Protection and Functionality Improvement Act (Anlegerschutz- und Funktionsverbesserungsgesetz) stipulate that investment advisors, compliance offi cers and sales managers must provide proof of their professional expertise. MLP already complies with this requirement through the established training facility at its own Corporate University.
The act reforming the Laws on Intermediaries for Financial Investments and on Investment Products (Finanzanlagenvermittler- und Vermögensanlagerecht) was instigated back in 2o11. Consequently, commercial brokers who – unlike MLP – do not possess a banking license, must comply with an extensive set of regulations with respect to the provision of advisory services for open and closed funds. These requirements include expertise specifi cations as well as information, consulting and documentation obligations, all of which came into effect on January 1, 2o13. These changes will make it more diffi cult for less quality-orientated providers to conduct business and will also provide further stimulus for the on-going consolidation process within the market.
In April the German Bundestag initiated new regulations for fee-based investment advisory services in the form of the Promotion and Regulation of Fee-Based Advice on Financial Instruments Act (Honoraranlageberatungsgesetz) which will come into effect in July 2o14. At the beginning of 2o12 MLP changed its fee structure for investment advisory services. Since that time – and unlike most of the other banks in the market – MLP clients are now credited in new business with all trailer commissions that MLP receives from investment companies for the brokerage of investment assets. By taking this step, MLP has already fulfi lled the main requirement for possible registration as a fee-based investment advisor. Whether or not we will actually utilise this option will heavily depend on the upcoming substantiation of the law in the legislative process – and in particular how existing contracts are to be treated. MLP already offers fee-based investment advisory services in fi elds where our clients provide corresponding demand, such as in parts of occupational pension provision and the fi nancing of doctor's offi ces. Irrespective of this situation, we remain convinced that the quality of the advisory services provided is primarily defi ned not by the type of remuneration but rather by the standard of consultant training, the quality of the product selection and the transparency afforded to clients.
In addition to this, introduction of the Markets in Financial Instruments II (MiFiD II) and Insurance mediation (IMD II) European directives is planned for implementation in the next few years. Initial drafts by the EU Commission have already been submitted for both of these new directives, although they are currently still in discussion by the respective EU committees and have yet to be passed. They are unlikely to be implemented as national legislation before 2o15.
In summary we consider the current competitive situation of MLP and the prerequisites for our future growth to be good. Through sustainable diversifi cation of our business model we have manoeuvred the company into an excellent position. Furthermore, we have already implemented several requirements that the legislator is now stipulating with new sets of regulations and standards.
In addition to moderate economic development we also face further challenges in our core markets of old-age provision, health insurance and wealth management. Consumers require a certain degree of trust and confi dence in the future when making investment decisions – particularly with respect to long-term saving processes. However, this confi dence is being eroded by current discussions about sovereign debt, the low interest rate phase and the high volatility of the capital markets.
However, from a current perspective, we expect to see a signifi cant pick-up in old-age provision and in health insurance in the second half-year. Our forecasts that we issued at the start of the year for stagnant or slightly declining revenue in old-age provision, and for stable revenue in health insurance remain achievable. In wealth management we still foresee higher revenue in 2o13. Nevertheless, a degree of uncertainty remains in all consulting areas due to the challenging market environment.
| 2013 | 2014 | 2015 | |
|---|---|---|---|
| Old-age provision | 0 | 0 | + |
| Health insurance | 0 | + | + |
| Wealth management | + | + | + |
| Very positive: ++, Positive: +, Neutral: 0, Negative: –, Very negative: –– | [Figure 10] |
Overall, MLP expects to achieve EBIT in the range of € 65 million to € 78 million in the fi nancial years 2o13 to 2o15. Due to the announced higher expenditure for future investments, we expect to be at the lower end of this corridor in the fi nancial year 2o13. With the anticipated pick-up in old-age provision and in health insurance, this year-end target still remains achievable.
Signifi cant changes to the opportunities resulting from the framework conditions, corporate strategic opportunities or business opportunities did not occur during the period under review. Relevant detailed explanations are contained in the Annual Report 2o12 on page 1o6 et seq .
There were no notable events subsequent to the reporting date which may affect the MLP Group's net assets, fi nancial position or results of operations.
In the fi rst half of 2o13 global stock markets exhibited high volatility. In the fi rst quarter the German benchmark index DAX was unable to establish itself above the 8,ooo points level. By the end of April it fell to its year low of 7,418 points – having been signifi cantly affected by concerns about European sovereign debt crisis. Weaker economic data also contributed to this correction before the resulting anticipation of continuingly low or even lower interest rates paved the way for a change of stock market trend. In a fulminant rally the DAX then rose by more than 1,ooo points within a month, reaching a new all-time high of 8,557 points on May 22.
At the start of June investors took profi ts leading to another trend reversal on the German stock market. Investors were hesitant due to concerns about the future economic strength of China, the world's second largest economy. Around this time the investment bank Goldman Sachs also downgraded its forecast for Chinese economic growth, thus inducing further uncertainty on the part of investors. At the end of the half-year the DAX closed at 7,959 points, corresponding to a rise of 3.5 % compared to the beginning of the year.
To a large extent, the MLP share mirrored the overall volatility of the markets. After signifi cant price gains at the beginning of the year, posting a year high of € 6.64, the MLP share price fell through to the end of the fi rst quarter, down to a level around € 5.6o. This decline was followed by a sideways move in which the share price ranged within a corridor between € 5.2o and € 5.5o. After the Annual General Meeting the share price weakened, due in particular to the dividend payment of € o.32 and persistent selling pressure, eventually falling to a year low of € 4.41. At the end of the half-year, the share price recovered somewhat and ended trading at € 4.68. After consideration of the dividend payment, the share price thus remains unchanged compared to the 2o12 year-end level of € 5.oo.
| 1st half-year 2013 | 1st half-year 2012 | |
|---|---|---|
| Share price at the beginning of the half-year | € 5.08 | € 5.05 |
| Share price high | € 6.64 | € 6.86 |
| Share price low | € 4.40 | € 5.00 |
| Share price at the end of the half-year | € 4.68 | € 5.03 |
| Dividend for the previous year | € 0.32 | € 0.60 |
| Market capitalisation (End of reporting period) | € 504,436,302.90 | € 542,625,002.14 |
[Table 07]
Shareholders at the Annual General Meeting on June 6, 2o13 voted almost unanimously (99.99 %) to approve the proposal by the Executive and Supervisory Boards to pay a dividend amounting to € o.32 per share, equating to a distribution rate of 65 %. As announced, MLP thereby returned to its longstanding distribution policy of paying out 6o % to 7o % of its net earnings to its shareholders. MLP thus remains one of the most attractive dividend-bearing securities in Germany.
In total over 7oo shareholders participated in the Annual General Meeting. They represented around 82 % of the share capital and approved all agenda items by a very large majority. Information about all aspects of the Annual General Meeting is available on the Internet at www.mlp-agm.com.
| 2nd quarter | 2nd quarter | 1st half-year | 1st half-year | ||
|---|---|---|---|---|---|
| All fi gures in €'000 | Notes | 2013 | 20121 | 2013 | 20121 |
| Revenue | (7) | 103,697 | 105,920 | 216,017 | 222,193 |
| Other revenue | 4,227 | 6,319 | 8,309 | 11,508 | |
| Total revenue | 107,923 | 112,239 | 224,326 | 233,701 | |
| Commission expenses | (8) | –45,498 | –45,793 | –94,630 | –88,807 |
| Interest expenses | –1,216 | –2,095 | –2,894 | –4,197 | |
| Personnel expenses | (9) | –26,090 | –23,184 | –52,783 | –49,207 |
| Depreciation and amortisation | –2,875 | –2,969 | –5,731 | –6,549 | |
| Other operating expenses | (10) | –31,577 | –35,347 | –63,681 | –69,943 |
| Earnings from shares accounted for using the equity method | 219 | 204 | 328 | 387 | |
| Earnings before interest and tax (EBIT) | 887 | 3,055 | 4,936 | 15,387 | |
| Other interest and similar income | 148 | 494 | 396 | 1,024 | |
| Other interest and similar expenses | –177 | –191 | –369 | –390 | |
| Finance cost | (11) | – 29 | 303 | 27 | 634 |
| Earnings before tax (EBT) | 858 | 3,358 | 4,962 | 16,021 | |
| Income taxes | 201 | –2,461 | –749 | – 5,659 | |
| Net profi t | 1,060 | 897 | 4,213 | 10,362 | |
| Of which attributable to | |||||
| owners of the parent company | 1,060 | 897 | 4,213 | 10,362 | |
| Earnings per share in €2 | |||||
| basic/diluted | 0.01 | 0.01 | 0.04 | 0.10 | |
| 1 Previous year's values adjusted. The adjustments are under Note 3. |
[Table 08] |
2 Basis of calculation: Average number of shares at June 30, 2013: 107,877,738.
| All fi gures in €'000 | 2nd quarter 2013 |
2nd quarter 20121 |
1st half-year 2013 |
1st half-year 20121 |
|---|---|---|---|---|
| Net profi t | 1,060 | 897 | 4,213 | 10,362 |
| Gains/losses related to defi ned benefi t plans | –1,435 | – | –1,435 | – |
| Deferred taxes on non reclassifi able gains/losses | 417 | – | 417 | – |
| Non-reclassifi able gains/losses | – 1,018 | – | – 1,018 | – |
| Gains/losses from the change in the fair value of securities available for sale | –120 | –1,533 | 120 | – 155 |
| Deferred taxes on reclassifi able gains/losses | –95 | 446 | –93 | 46 |
| Reclassifi able gains/losses | – 215 | – 1,086 | 28 | – 109 |
| Other comprehensive income | – 1,233 | – 1,086 | – 991 | – 109 |
| Total comprehensive income | – 173 | – 189 | 3,222 | 10,252 |
| Total comprehensive income attributable to | ||||
| owners of the parent company | –173 | –189 | 3,222 | 10,252 |
| 1 Previous year's values adjusted. The adjustments are under Note 3. |
[Table 09] |
| All fi gures in €'000 | Notes | June 30, 2013 | Dec. 31, 20121 |
|---|---|---|---|
| Intangible assets | 147,510 | 141,713 | |
| Property, plant and equipment | 66,680 | 68,782 | |
| Shares accounted for using the equity method | 2,929 | 2,601 | |
| Deferred tax assets | 3,044 | 2,999 | |
| Receivables from clients in the banking business | (12) | 453,742 | 431,396 |
| Receivables from banks in the banking business | (12) | 467,327 | 510,510 |
| Financial assets | (13) | 174,117 | 137,118 |
| Tax refund claims | (14) | 17,893 | 7,428 |
| Other accounts receivable and other assets | (15) | 96,057 | 139,749 |
| Cash and cash equivalents | 35,940 | 40,682 | |
| Assets held for sale | 7,403 | 10,532 | |
| Total | 1,472,642 | 1,493,509 | |
| 1 |
Previous year's values adjusted. The adjustments are under Note 3.
[Table 10]
| All fi gures in €'000 | Notes | June 30, 2013 | Dec. 31, 20121 |
|---|---|---|---|
| Shareholders' equity | (16) | 352,857 | 384,157 |
| Provisions | 74,818 | 83,704 | |
| Deferred tax liabilities | 8,475 | 8,465 | |
| Liabilities due to clients in the banking business | 936,928 | 871,110 | |
| Liabilities due to banks in the banking business | 9,303 | 10,498 | |
| Tax liabilities | 5,176 | 4,831 | |
| Other liabilities | (15) | 85,084 | 130,745 |
| Total | 1,472,642 | 1,493,509 | |
| 1 |
1 Previous year's values adjusted. The adjustments are under Note 3. [Table 11]
| All fi gures in €'000 | 1st half-year 2013 |
1st half-year 2012 |
|---|---|---|
| Cash fl ow from operating activities | 72,723 | 31,188 |
| Cash fl ow from investing activities | –48,044 | 47,886 |
| Cash fl ow from fi nancing activities | –34,521 | –64,727 |
| Change in cash and cash equivalents | – 9,842 | 14,347 |
| Cash and cash equivalents at the end of the period | 50,940 | 67,094 |
| [Table 12] |
Condensed statement of cash fl ow for the period from April 1 to June 30, 2013
| All fi gures in €'000 | 2nd quarter 2013 |
2nd quarter 2012 |
|---|---|---|
| Cash fl ow from operating activities | 9,765 | –4,952 |
| Cash fl ow from investing activities | –44,447 | 67,237 |
| Cash fl ow from fi nancing activities | –34,521 | –64,727 |
| Change in cash and cash equivalents | – 69,203 | – 2,442 |
| Cash and cash equivalents at the end of the period | 50,940 | 67,094 |
[Table 13]
The notes on the statement of cash fl ow appear in Note 17.
| Equity attributable to MLP AG shareholders | ||||||
|---|---|---|---|---|---|---|
| All fi gures in €'000 | Share capital |
Capital reserves |
Gains/losses from changes in the fair value of available-for-sale securities |
Revaluation of gains/losses related to defi ned benefi t plans after taxes |
Retained earnings |
Total shareholders' equity |
| As of Jan. 1, 2012 | 107,878 | 142,184 | 424 | – | 149,154 | 399,640 |
| Effects from the retrospective application of IAS 19 |
– | – | – | – | –1,066 | –1,066 |
| As of Jan. 1, 2012 (adjusted) | 107,878 | 142,184 | 424 | – | 148,088 | 398,574 |
| Dividend | – | – | – | – | –64,727 | –64,727 |
| Transactions with owners | – | – | – | – | – 64,727 | – 64,727 |
| Net profi t | – | – | – | – | 10,362 | 10,362 |
| Other comprehensive income | – | – | –109 | – | – | –109 |
| Total comprehensive income | – | – | – 109 | – | 10,362 | 10,252 |
| As of June 30, 2012 | 107,878 | 142,184 | 314 | – | 93,723 | 344,100 |
| As of Jan. 1, 2013 | 107,878 | 142,184 | 382 | – | 137,110 | 387,554 |
|---|---|---|---|---|---|---|
| Effects from the retrospective application of IAS 19 |
– | – | – | – | – 3,397 | – 3,397 |
| As of Jan. 1, 2013 (adjusted) | 107,878 | 142,184 | 382 | – | 133,713 | 384,157 |
| Dividend | – | – | – | – | –34,521 | –34,521 |
| Transactions with owners | – | – | – | – | – 34,521 | – 34,521 |
| Net profi t | – | – | – | – | 4,213 | 4,213 |
| Other comprehensive income | – | – | 28 | – 1,018 | – | -991 |
| Total comprehensive income | – | – | 28 | – 1,018 | 4,213 | 3,222 |
| As of June 30, 2013 | 107,878 | 142,184 | 410 | – 1,018 | 103,405 | 352,857 |
[Tabelle 14]
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, non-life insurance, fi nancing, wealth management and banking services.
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, 2o12. The interim accounts were subject to an independent auditor's review.
Except for the changes presented in the notes under item [3], the condensed consolidated interim fi nancial statements are based on the accounting and valuation methods as well as the consolidation principles that were applied to the Group fi nancial statements for the fi nancial year 2o12. These are presented in the Group notes of the annual report 2o12 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.
The accounting policies applied are the same as those used in the fi nancial statements at December 31, 2o12 except the standards and interpretations to be used for the fi rst time in the fi nancial year 2o13.
In the fi nancial year 2o13 the following new or revised standards are to be used for the fi rst time:
The amendments to IAS 1 affect the presentation of other comprehensive income. The individual items of other comprehensive income are to be split into items for which a reclassifi cation to profi t or loss is possible (reclassifi able), and items for which a reclassifi cation to profi t or loss is not possible (non-reclassifi able).
Through the abolition of the corridor method in the amended IAS 19, the actuarial gains and losses now have a direct effect in the Group balance sheet which leads to an increase in accruals for pensions and similar obligations as well as to a reduction in equity capital. Actuarial gains and losses must be recorded immediately as they arise under other comprehensive income and have no effect on the income statement. In addition the new standard also introduces the net interest approach through which the balance sheet net obligation (difference between DBO and plan assets) attracts interest at the actuarial interest rate. The amendments to IAS 19 are to be applied retrospectively. Due to the effects of the amended IAS 19, the previous year's values are adjusted.
The following tables present the main effects resulting from the amended requirements of IAS 19.
| Dec. 31, 2012 | Jan. 1, 2012 | |||||
|---|---|---|---|---|---|---|
| All fi gures in €'000 | Before adjustment |
Adjustment | After adjustment |
Before adjustment |
Adjustment | After adjustment |
| Deferred tax assets | 2,597 | 402 | 2,999 | 4,880 | 435 | 5,315 |
| Total assets | 1,493,108 | 402 | 1,493,509 | 1,489,751 | 435 | 1,490,186 |
| Shareholders' equity | 387,554 | – 3,397 | 384,157 | 399,640 | – 1,066 | 398,573 |
| Provisions | 78,921 | 4,783 | 83,704 | 89,511 | 1,501 | 91,012 |
| Pension | 11,827 | 4,783 | 16,610 | 12,718 | 1,501 | 14,219 |
| Other provision | 67,094 | – | 67,094 | 76,793 | – | 76,793 |
| Deferred tax liabilities | 9,449 | -984 | 8,465 | 9,428 | – | 9,428 |
| Total liabilities and shareholders' equity | 1,493,108 | 402 | 1,493,509 | 1,489,751 | 435 | 1,490,186 |
[Table 15]
| 2nd quarter 2012 |
1st half-year 2012 |
|||||
|---|---|---|---|---|---|---|
| All fi gures in €'000 | Before adjustment |
Adjustment | After adjustment |
Before adjustment |
Adjustment | After adjustment |
| Other operating expenses | – 35,258 | – 89 | – 35,347 | – 69,765 | – 178 | – 69,943 |
| Earnings before interest and tax (EBIT) | 3,144 | – 89 | 3,055 | 15,565 | – 178 | 15,387 |
| Other interest and similar expenses | – 367 | 177 | – 191 | – 744 | 355 | – 390 |
| Finance cost | 126 | 177 | 303 | 280 | 355 | 634 |
| Earnings before tax (EBT) | 3,270 | 88 | 3,358 | 15,844 | 177 | 16,021 |
| Income taxes | – 2,435 | – 26 | – 2,461 | – 5,608 | – 51 | – 5,659 |
| Net profi t | 835 | 63 | 897 | 10,236 | 125 | 10,362 |
| Earnings per share in € | ||||||
| basic/diluted | 0.01 | 0.01 | 0.09 | 0.10 | ||
| [Table 16] |
Changes from the fi rst-time application of IFRS 13 primarily result in more extensive disclosures in the notes.
In all other cases there were no effects on the representation of the Group's net assets, fi nancial position or results of operations.
In accordance with a decision taken by the Executive Board on February 26, 2o13 MLPdialog (formerly part of TPC) was spun-off. In this respect, ACADEMIC NETWORKS GMBH which is an existing wholly-owned subsidiary of MLP Finanzdienstleistungen AG, was reactivated and renamed MLPdialog GmbH. After reactivation, the new company took over the assets of TPC GmbH that are necessary for the business (asset deal). The renaming and the change in business activity and internal rules of procedure were entered into the Commercial Register in Mannheim on April 3, 2o13. Since June 1, 2o13 MLPdialog GmbH has been included in the scope of consolidation.
Due to the seasonal development of its business, the Group generally expects earnings to be higher in the second half year than in the fi rst half year.
There were no signifi cant changes compared to December 31, 2o12.
| Financial Services | |||||
|---|---|---|---|---|---|
| All fi gures in €'000 | 2nd quarter 2013 |
2nd quarter 20121 |
|||
| Revenue | 81,170 | 85,678 | |||
| of which total inter-segment revenue | 1,224 | 1,253 | |||
| Other revenue | 3,002 | 4,271 | |||
| of which total inter-segment revenue | 468 | 438 | |||
| Total revenue | 84,172 | 89,949 | |||
| Commission expenses | – 32,710 | – 34,620 | |||
| Interest expenses | – 1,216 | – 2,095 | |||
| Personnel expenses | – 18,237 | – 16,103 | |||
| Depreciation/amortisation | – 1,767 | – 1,846 | |||
| Other operating expenses | – 29,093 | – 32,757 | |||
| Earnings from shares accounted for using the equity method | 219 | 204 | |||
| Segment earnings before interest and tax (EBIT) | 1,367 | 2,732 | |||
| Other interest and similar income | 93 | 114 | |||
| Other interest and similar expenses | – 30 | – 29 | |||
| Finance cost | 63 | 85 | |||
| Earnings before tax (EBT) | 1,430 | 2,817 | |||
| Income taxes | |||||
| Net profi t |
Previous year's values adjusted. The adjustments are under Note 3.
| Feri | Holding | Consolidation | Total | ||||
|---|---|---|---|---|---|---|---|
| 2nd quarter 2013 |
2nd quarter 2012 |
2nd quarter 2013 |
2nd quarter 20121 |
2nd quarter 2013 |
2nd quarter 2012 |
2nd quarter 2013 |
2nd quarter 20121 |
| 23,823 | 21,570 | – | – | – 1,297 | – 1,328 | 103,697 | 105,920 |
| 73 | 75 | – | – | – 1,297 | – 1,328 | – | – |
| 1,384 | 2,059 | 2,535 | 2,590 | – 2,694 | –2 ,601 | 4,227 | 6,319 |
| – | – | 2,226 | 2,163 | – 2,694 | – 2,601 | – | – |
| 25,207 | 23,629 | 2,535 | 2,590 | – 3,991 | – 3,929 | 107,923 | 112,239 |
| – 13,904 | – 12,349 | – | – | 1,116 | 1,176 | – 45,498 | – 45,793 |
| – | – | – | – | 1 | 1 | – 1,216 | – 2,094 |
| – 7,059 | – 6,209 | – 794 | – 872 | – | – | – 26,090 | – 23,184 |
| – 501 | – 491 | – 607 | – 632 | – | – | – 2,875 | – 2,969 |
| – 2,965 | – 2,728 | – 2,357 | – 2,530 | 2,838 | 2,668 | – 31,577 | – 35,347 |
| – | – | – | – | – | 0 | 219 | 204 |
| 779 | 1,852 | – 1,222 | – 1,444 | – 36 | – 85 | 887 | 3,055 |
| – | 4 | 57 | 374 | – 2 | 2 | 148 | 494 |
| – 66 | – 97 | – 142 | – 160 | 61 | 96 | – 177 | – 191 |
| – 66 | – 93 | – 85 | 214 | 60 | 98 | – 29 | 303 |
| 712 | 1,759 | – 1,307 | –1,230 | 23 | 13 | 858 | 3,358 |
| 201 | – 2,461 | ||||||
| 1,060 | 897 |
[Table 17]
| Financial Services | |||
|---|---|---|---|
| All fi gures in €'000 | 1st half-year 2013 |
1st half–year 20121 |
|
| Revenue | 171,505 | 192,377 | |
| of which total inter-segment revenue | 2,479 | 2,504 | |
| Other revenue | 6,402 | 7,941 | |
| of which total inter-segment revenue | 910 | 861 | |
| Total revenue | 177,907 | 200,318 | |
| Commission expenses | – 69,494 | – 76,073 | |
| Interest expenses | – 2,896 | – 4,197 | |
| Personnel expenses | – 36,824 | – 34,862 | |
| Depreciation/amortisation | – 3,537 | – 4,288 | |
| Other operating expenses | – 59,208 | – 64,466 | |
| Earnings from shares accounted for using the equity method | 328 | 387 | |
| Segment earnings before interest and tax (EBIT) | 6,276 | 16,820 | |
| Other interest and similar income | 287 | 198 | |
| Other interest and similar expenses | – 135 | – 134 | |
| Finance cost | 153 | 64 | |
| Earnings before tax (EBT) | 6,429 | 16,884 | |
| Income taxes | |||
| Net profi t | |||
1 Previous year's values adjusted. The adjustments are under Note 3.
| Feri | Holding | Consolidation | Total | ||||
|---|---|---|---|---|---|---|---|
| 1st half-year 2013 |
1st half–year 2012 |
1st half-year 2013 |
1st half–year 20121 |
1st half-year 2013 |
1st half–year 2012 |
1st half-year 2013 |
1st half–year 20121 |
| 47,128 | 32,547 | – | – | – 2,616 | – 2,730 | 216,017 | 222,193 |
| 137 | 226 | – | – | – 2,616 | – 2,730 | – | – |
| 2,172 | 3,688 | 5,093 | 5,066 | – 5,358 | – 5,186 | 8,309 | 11,508 |
| – | – | 4,448 | 4,326 | – 5,358 | – 5,186 | – | – |
| 49,300 | 36,234 | 5,093 | 5,066 | – 7,974 | – 7,916 | 224,326 | 233,701 |
| – 27,364 | – 15,144 | – | – | 2,228 | 2,410 | – 94,630 | – 88,807 |
| – | – | – | – | 1 | 1 | – 2,894 | – 4,196 |
| – 14,243 | – 12,255 | -1,716 | – 2,090 | – | – | – 52,783 | – 49,207 |
| – 980 | – 993 | -1,213 | – 1,267 | – | – | – 5,731 | – 6,549 |
| – 5,402 | – 5,578 | -4,647 | – 5,299 | 5,576 | 5,401 | – 63,681 | – 69,943 |
| – | – | – | – | – | – | 328 | 387 |
| 1,311 | 2,263 | -2,483 | – 3,591 | – 169 | – 105 | 4,936 | 15,387 |
| 1 | 9 | 172 | 905 | – 65 | – 88 | 396 | 1,024 |
| – 123 | – 154 | – 285 | – 312 | 174 | 210 | – 369 | – 390 |
| – 122 | – 145 | – 113 | 593 | 108 | 121 | 27 | 634 |
| 1,190 | 2,118 | – 2,596 | – 2,998 | – 60 | 16 | 4,962 | 16,021 |
| – 749 | – 5,659 | ||||||
| 4,213 | 10,362 | ||||||
[Table 18]
| All fi gures in €'000 | 2nd quarter 2013 |
2nd quarter 2012 |
1st half-year 2013 |
1st half-year 2012 |
|---|---|---|---|---|
| Old-age provision | 44,567 | 48,414 | 83,510 | 97,361 |
| Wealth management | 33,571 | 29,920 | 65,288 | 49,167 |
| Health insurance | 11,676 | 12,692 | 25,556 | 31,775 |
| Non-life insurance | 4,309 | 4,731 | 22,531 | 22,608 |
| Loans and mortgages | 3,048 | 2,599 | 5,956 | 5,504 |
| Other commission and fees | 950 | 981 | 1,697 | 1,858 |
| Commission and fees | 98,120 | 99,338 | 204,538 | 208,272 |
| Interest income | 5,576 | 6,582 | 11,479 | 13,921 |
| Total | 103,697 | 105,920 | 216,017 | 222,193 |
[Table 19]
In the period from January 1 to June 3o, 2o13 the commission expenses rose from € 88,8o7 thsd to € 94,63o thsd compared to same period of the previous year. These mainly contain the commissions and other fee components for the freelance MLP consultants in the fi nancial services segment as well as expenses related to fund administration in the Feri segment. For further explanations please refer to the section "Results Of Operations" of the Group Interim Management Report.
Personnel expenses increased in the period from January 1 to June 3o, 2o13 compared to the same period of the previous year from € 49,2o7 thsd to € 52,783 thsd. For further explanations please refer to the section "Personnel" of the Group Interim Management Report.
At June 3o, 2o13, the MLP Group had the following numbers of employees in the strategic fi elds of business:
| Total | 1,558 | 167 | 1,528 | 171 |
|---|---|---|---|---|
| Holding | 9 | - | 8 | - |
| Feri | 248 | 66 | 252 | 63 |
| Financial Services | 1,301 | 101 | 1,268 | 108 |
| June 30, 2013 | of which part-time employees |
June 30, 2012 | of which part-time employees |
[Table 20]
| 2nd quarter | 2nd quarter | 1st half-year | 1st half-year | |
|---|---|---|---|---|
| All fi gures in €'000 | 2013 | 20121 | 2013 | 20121 |
| IT operations | 10,753 | 11,040 | 21,797 | 21,777 |
| Rental and leasing | 3,524 | 3,799 | 6,860 | 7,484 |
| Administration operations | 2,530 | 2,966 | 5,423 | 6,291 |
| Consultancy | 2,653 | 3,441 | 4,865 | 6,450 |
| External services – banking business | 1,894 | 1,699 | 4,717 | 3,419 |
| Representation and advertising | 1,959 | 3,020 | 3,458 | 5,276 |
| Training and further education | 1,173 | 811 | 2,176 | 1,833 |
| Premiums and fees | 762 | 1,131 | 2,069 | 2,858 |
| Other external services | 845 | 876 | 1,551 | 1,607 |
| Entertainment | 653 | 760 | 1,494 | 1,560 |
| Travel expenses | 678 | 903 | 1,398 | 1,704 |
| Insurance | 630 | 681 | 1,255 | 1,448 |
| Expenses for commercial agents | 569 | 809 | 1,088 | 1,488 |
| Maintenance | 352 | 290 | 827 | 789 |
| Other personnel costs | 254 | 362 | 581 | 659 |
| Audit | 322 | 209 | 561 | 414 |
| Write-downs and impairments of other receivables and other assets |
239 | 376 | 496 | 517 |
| Write-downs and impairments of other receivables from clients in the banking business |
168 | 717 | 363 | 1.223 |
| Expenses from the disposal of assets | 15 | 21 | 82 | 77 |
| Sundry other operating expenses | 1,605 | 1,435 | 2,621 | 3,069 |
| Total | 31,577 | 35,347 | 63,681 | 69,943 |
1 Previous year's values adjusted. The adjustments are under note 3.
[Table 21]
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. The item "External services - banking business" mainly contains 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. Expenses for representation and advertising include costs incurred due to media presence and client information activities. Expenses for commercial agents include costs for former consultants and the training allowance granted for new consultants. The other operating costs mainly include expenses for goodwill payments, remuneration for members of the Supervisory Board and vehicle costs.
| All fi gures in €'000 | 2nd quarter 2013 |
2nd quarter 20121 |
1st half-year 2013 |
1st half-year 20121 |
|---|---|---|---|---|
| Other interest and similar income | 148 | 494 | 396 | 1,024 |
| Interest and similar expenses from fi nancial instruments |
– 34 | – 35 | – 82 | – 79 |
| Interest expenses from net obligations to defi ned benefi t plans |
– 143 | – 155 | – 287 | – 311 |
| Other interest and similar expenses | – 177 | – 191 | – 369 | – 390 |
| Finance cost | – 29 | 303 | 27 | 634 |
| 1 Previous year's values adjusted. The adjustments are under Note 3. |
[Table 22] |
1 Previous year's values adjusted. The adjustments are under Note 3.
The reduction in the fi nance cost is primarily attributable to low interest income from bank deposits.
Receivables from banking business decreased from € 941,9o6 thsd per December 31, 2o12 to € 921,o69 thsd per June 3o, 2o13. For further explanations please refer to the section "Financial Position" of the Group Interim Management Report.
| All fi gures in €'000 | June 30, 2013 | Dec. 31, 2012 |
|---|---|---|
| Held-to-maturity investments | 98,408 | 90,456 |
| Securities rated at fair value through profi t and loss | 5,101 | 5,126 |
| Bonds and other fi xed-income securities | 103,509 | 95,582 |
| Available-for-sale fi nancial assets | 6,478 | 6,692 |
| Securities rated at fair value through profi t and loss | 1,861 | 1,840 |
| Shares and other variable yield securities | 8,340 | 8,532 |
| Fixed-term deposits (loans and receivables) | 59,239 | 30,248 |
| Investments in subsidiaries and associates (available-for-sale fi nancial assets) | 3,029 | 2,756 |
| Total | 174,117 | 137,118 |
| [Table 23] |
The increase in fi nancial investments is primarily attributable to the outfl ow of fi xed-term deposits.
Tax refund claims rose from € 7,428 thsd at December 31, 2o12 to € 17,893 thsd. The increase mainly resulted from capitalised income tax receivables.
Due to the seasonally stronger year-end business, high receivables from insurance companies as well as high liabilities towards commercial agents at December 31, 2o12 had to be shown which were then balanced out in the fi rst quarter of 2o13. A lower amount of receivables and liabilities were built up in the fi rst half year of 2o13.
As of June 3o, 2o13 the share capital of MLP AG is made up of 1o7,877,738 (December 31, 2o12: 1o7,877,738) no-par-value shares. The retained earnings include statutory reserve of € 3,117 thsd (previous year: € 3,117 thsd).
In accordance with the resolution passed at the Annual General Meeting June 6, 2o13 a dividend of € 34,521 thsd (previous year: € 64,727 thsd) was to be paid for the fi nancial year 2o12. This corresponds to € o.32 per share (previous year: € o.6o per share).
The consolidated cash fl ow statement shows how cash and cash equivalents have changed in the course of the year as a result of infl ows and outfl ows of funds. As per IAS 7 "Statement of Cash Flows", differentiation is made between cash fl ows from operating activities, from investing activities and from fi nancing activities.
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. As part of the indirect determination of cash fl ow, the changes in balance sheet items due to operating activities are adjusted by effects from changes to the scope of consolidation and currency translations. The changes in the respective balance sheet items can therefore only be partially aligned with the corresponding values in the published consolidated balance sheets. For further explanations please refer to the section "Financial Position" of the Management Report.
The Cash fl ow from investing activities is mainly infl uenced by the investment of monies in fi xed-term deposits as well as by matured term investments.
The Cash fl ow from fi nancing activity represents cash-related equity changes, loans used and paid back, as well as payments for the acquisition of additional shares in subsidiaries.
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 | June 30, 2013 | June 30, 2012 |
|---|---|---|
| Cash and cash equivalents | 35,940 | 27,116 |
| Loans ≤ 3 months | 15,000 | 40,000 |
| Liabilities to banks due on demand | – | – 23 |
| Cash and cash equivalents | 50,940 | 67,094 |
| [Table 24] |
MLP Finanzdienstleistungen AG receivables from banks are included in cash and cash equivalents provided they are separable as own-account investing activities. Inseparable elements are allocated to the operating business of the business segment "bank" and thus to the cash fl ow from operating activities.
The contingent liabilities from sureties and guarantees (nominal obligation amount) fell from € 4,o67 thsd at December 31, 2o12 to € 3,o85 thsd and the irrevocable loan commitments decreased from € 39,o37 thsd at December 31, 2o12 to € 31,16o thsd.
Beyond this there were no signifi cant changes compared to December 31, 2o12.
The carrying amounts and fair values of fi nancial assets and fi nancial liabilities are broken down into the fi nancial instrument classes and categories as shown in the following table:
| June 30, 2013 | Dec. 31, 2012 | |||||
|---|---|---|---|---|---|---|
| Carrying | No fi nancial instruments according to |
Carrying | No fi nancial instruments according to |
|||
| All fi gures in €'000 | amount | Fair value | IAS 32/39 | amount | Fair value | IAS 32/39 |
| Financial assets measured at fair value | 16,825 | 16,825 | 17,795 | 17,795 | ||
| Fair Value Option | 10,347 | 10,347 | 11,103 | 11,103 | ||
| Receivables from banking business – clients | 3,385 | 3,385 | – | 4,137 | 4,137 | – |
| Financial investments (share certifi cates and structured bonds) |
6,962 | 6,962 | – | 6,966 | 6,966 | – |
| Available-for-sale fi nancial assets | 6,478 | 6,478 | 6,692 | 6,692 | ||
| Financial investments (share certifi cates and investment fund shares) |
6,478 | 6,478 | – | 6,692 | 6,692 | – |
| Financial assets measured at amortised cost | 1,178,378 | 1,224,295 | 1,210,876 | 1,263,886 | ||
| Loans and receivables | 1,079,970 | 1,124,076 | 1,120,420 | 1,171,331 | ||
| Receivables from banking business – clients | 450,358 | 493,432 | – | 427,258 | 476,195 | – |
| Receivables from banking business – banks | 467,327 | 468,358 | – | 510,510 | 512,485 | – |
| Financial investments (fi xed and time deposits) | 59,239 | 59,239 | – | 30,248 | 30,248 | – |
| Other accounts receivable and other assets | 67,106 | 67,106 | 28,951 | 111,721 | 111,721 | 28,028 |
| Cash and cash equivalents | 35,940 | 35,940 | – | 40,682 | 40,682 | – |
| Held to maturity investments | 98,408 | 100,218 | 90,456 | 92,555 | ||
| Financial assets (bonds) | 98,408 | 100,218 | – | 90,456 | 92,555 | – |
| Financial assets measured at cost | 3,029 | 3,029 | 2,756 | 2,756 | ||
| Available-for-sale fi nancial assets | 3,029 | 3,029 | 2,756 | 2,756 | ||
| Financial assets (investments) | 3,029 | 3,029 | – | 2,756 | 2,756 | – |
| Financial liabilities measured at fair value | 186 | 186 | 345 | 345 | ||
| Financial instruments held for trading | 186 | 186 | 345 | 345 | ||
| Other liabilities | 186 | 186 | – | 345 | 345 | – |
| Financial liabilities measured at amortised cost |
1,009,485 | 1,009,150 | 987,988 | 985,585 | ||
| Liabilities due to banking business – clients | 936,928 | 935,991 | – | 871,110 | 867,761 | – |
| Liabilities due to banking business – banks | 9,303 | 9,906 | – | 10,498 | 11,443 | – |
| Other liabilities | 63,254 | 63,254 | 21,644 | 106,381 | 106,381 | 24,364 |
| Liabilities due to fi nancial guarantees and credit commitments |
34,246 | 34,246 | – | 43,104 | 43,104 | – |
| [Table 25] |
Insofar as there is an active market for fi nancial assets and fi nancial liabilities, the respective market prices on the closing date are used for determining the fair value. If there is no active market on the closing date, the fair value is determined using recognised valuation models. The underlying accounting and valuation principles for fi nancial instruments remain unchanged compared to the previous year and are contained in the notes as part of the Annual Report 2o12.
For equity instruments of fi nancial investments not listed on an active market, the fair value is generally determined on the basis of the gross rental method using non-observable parameters such as beta factors or risk-equivalent discount interest rates. If it is not possible to reliably determine the fair value, in particular due to a lack of necessary data on earnings projections, equity instruments not listed on an active market are recognised at their acquisition costs, minus any impairments. At the balance sheet reference date, there is no indication of fair values being lower than carrying amounts. For these fi nancial instruments it is assumed that the fair values are equivalent to the carrying amounts. There was no existing basic intention to sell any of the assets reported at June 3o, 2o13.
The fair values determined for measurement in the balance sheet are broken down into the following hierarchy levels:
| June 30, 2013 | Dec. 31, 2012 | |||||
|---|---|---|---|---|---|---|
| All fi gures in €'000 | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 |
| Assets measured at fair value | ||||||
| Receivables from clients in the banking business |
– | 3,385 | – | – | 4,137 | – |
| Financial assets | 13,440 | – | – | 13,658 | – | – |
| Financial liabilities – measured at fair value | ||||||
| Other liabilities – interest derivatives | – | 186 | – | – | 345 | – |
| [Table 26] |
The fi nancial assets and liabilities measured by MLP at fair value are split into three hierarchy levels in accordance with IFRS 13. Fair values at hierarchy level 1 are determined using the prices available in active markets for the respective fi nancial instrument (quoted market prices). The fair values at hierarchy level 2 are either determined using prices on active markets for comparable, but not identical, fi nancial instruments or using valuation techniques based on data from observable markets. When using valuation techniques, which incorporate a key parameter that cannot be observed in the market, fair values are assigned to hierarchy level 3.
At the balance sheet reference date MLP had no level 3 fair values. No measurement reclassifi cations between the levels were made during the half year of 2o13.
Within the scope of the ordinary business, legal transactions under standard market conditions were made between the Group and members of the Executive Board and the Supervisory board. Beyond this there were no signifi cant changes compared to December 31, 2o12.
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, August 12, 2o13
MLP AG
Der Vorstand
Dr. Uwe Schroeder-Wildberg Manfred Bauer Reinhard Loose Muhyddin Suleiman
We have reviewed the condensed interim consolidated fi nancial statements – comprising the statement of fi nancial position, the income statement and statement of comprehensive income, the condensed statement of cash fl ow, the statement of changes in equity and selected explanatory notes – together with the interim group management report of MLP AG, Wiesloch, for the period from January 1 to June 3o, 2o13 that are part of the semi annual fi nancial report according to § 37 w WpHG ["Wertpapierhandelsgesetz": "German Securities Trading Act"]. The preparation of the condensed interim consolidated fi nancial statements in accordance with those IFRS applicable to interim fi nancial reporting as adopted by the EU, and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports, is the responsibility of the Company's management. Our responsibility is to issue a report on the condensed interim consolidated fi nancial statements and on the interim group management report based on our review.
We performed our review of the condensed interim consolidated fi nancial statements and the interim group management report in accordance with the German generally accepted standards for the review of fi nancial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with a certain level of assurance, that the condensed interim consolidated fi nancial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim fi nancial reporting as adopted by the EU, and that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a fi nancial statement audit. Since, in accordance with our engagement, we have not performed a fi nancial statement audit, we cannot issue an auditor's report.
Based on our review, no matters have come to our attention that cause us to presume that the condensed interim consolidated fi nancial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim fi nancial reporting as adopted by the EU, or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.
Frankfurt am Main, August 13, 2o13
KPMG AG Wirtschaftsprüfungsgesellschaft
Dr. Hübner Hommel Wirtschaftsprüfer Wirtschaftsprüfer
To the best of our knowledge, and in accordance with the applicable reporting principles for interim fi nancial reporting, the interim consolidated fi nancial statements give a true and fair view of the assets, liabilities, fi nancial position and profi t or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining months of the fi nancial year.
Wiesloch, August 12, 2o13
MLP AG
Der Vorstand
Dr. Uwe Schroeder-Wildberg Manfred Bauer Reinhard Loose Muhyddin Suleiman
| 05 Figure 01 | Economic growth in Germany, |
|---|---|
| Change in % compared to the previous quarter | |
| 06 Figure 02 | Expectations of personal living standards in old age |
| 07 Figure 03 | Increase in the number of people needing |
| long-term care | |
| 08 Figure 04 | Infl ows and Outfl ows for various types of mutual |
| funds in Germany, January – June 2013 | |
| 10 Figure 05 | Revenue from commission and fees in comparison |
| to previous year | |
| 11 Figure 06 | EBIT in comparison to previous year |
| 17 Figure 07 | Total revenue and EBIT for the fi nancial services |
| segment | |
| 18 Figure 08 | Total revenue and EBIT segment Feri |
| 20 Figure 09 | Expected growth in GDP in Germany |
| 23 Figure 10 | Sales revenue estimate: 2013-2015 |
| 23 Figure 11 | Development of operating EBIT |
| 24 Figure 12 | MLP-Share, SDAX und DAXsector Financial Services |
|---|---|
| in the fi rst half-year 2013 |
Table 01 MLP key fi gures
| 11 Table 02 | Earnings development | |
|---|---|---|
| 13 Table 03 | Assets as at June 30, 2013 | |
| 13 Table 04 | Liabilities and shareholders' equity | |
| as at June 30, 2013 | ||
| 14 Table 05 | Condensed statement of cash fl ows | |
| 15 Table 06 | Number of emplyees |
Table 07 Key fi gures of the MLP share
| 26 Table 08 | Income statement for period from | |
|---|---|---|
| January 1 to June 30, 2013 | ||
| 26 Table 09 | Statement of comprehensive income | |
| from January 1 to June 30, 2013 | ||
| 27 Table 10 | Assets as of June 30, 2013 | |
| 27 Table 11 | Liabilities and shareholders' equity | |
| as of June 30, 2013 | ||
| 28 Table 12 | Condensed statement of cash fl ow for | |
| the period from January 1 to June 30, 2013 | ||
| 28 Table 13 | Condensed statement of cash fl ow for | |
| the period from April 1 to June 30, 2013 | ||
| 29 Table 14 | Statement of changes in equity |
| 32 Table 15 | Adjustments to the acounting policies – | |
|---|---|---|
| Statement of fi nancial position | ||
| 32 Table 16 | Adjustments to the acounting policies – | |
| Income statement | ||
| 34 Table 17 | Information on the reportable | |
| business segments (quarterly comparison) | ||
| 36 Table 18 | Information on the reportable | |
| business segments (half-year comparison) | ||
| 38 Table 19 | Revenue | |
| 38 Table 20 | Personnel expenses/Number of employees | |
| 39 Table 21 | Other operating expenses | |
| 40 Table 22 | Finance cost | |
| 40 Table 23 | Financial assets | |
| 42 Table 24 | Cash and cash equivalents | |
| 43 Table 25 | Additional information on fi nancial instruments | |
| 44 Table 26 | Hierarchy Levels – Fair values |
Dr. Uwe Schroeder-Wildberg (Chairman, appointed until December 31, 2o17)
Manfred Bauer (Product Management, appointed until April 3o, 2o15)
Reinhard Loose (Controlling, IT and Procurement, Accounting, Risk Management, appointed until January 31, 2o19)
Muhyddin Suleiman (Sales, appointed until September 3, 2o17)
Dr. Peter Lütke-Bornefeld (Chairman, appointed until 2o18)
Dr. h. c. Manfred Lautenschläger (Vice chairman, appointed until 2o18)
Dr. Claus-Michael Dill (appointed until 2o18)
Johannes Maret (appointed until 2o18)
Alexander Beer (Employee representative, appointed until 2o18)
Burkhard Schlingermann (Employee representative, appointed until 2o18)
Maria Bähr (Employee representative, appointed until June 6, 2o13)
Norbert Kohler (Employee representative, appointed until June 6, 2o13)
September 25, 2o13 German Investment Conference, Munich. MLP presents the corporate activity, strategy and long-term prospects of the company to investors and analysts.
November 14, 2o13 Publication of the results for the fi rst nine months and the third quarter. MLP publishes the Interim Report for the fi rst nine months and the third quarter.
November 18, 2o13 Road show in London. MLP presents the corporate activity, strategy and long-term prospects of the company to investors.
All updated Investor Relations dates can be found in our fi nancial calendar at: http://www.mlp-ag.com/investor-relations/fi nancial-calendar
Tel +49 (o) 6222 • 3o8 • 832o Fax +49 (o) 6222 • 3o8 • 1131 [email protected]
Tel +49 (o) 6222 • 3o8 • 831o Fax +49 (o) 6222 • 3o8 • 1131 [email protected]
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", "estimate", "assume", "intend", "plan", "should" "could", "project" and 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 obligation 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 numerically differing from expectations. The prognoses refl ect the points of view at the time when they were made.
MLP AG Alte Heerstraße 40 69168 Wiesloch Tel +49 (0) 6222 • 308 • 8320 Fax +49 (0) 6222 • 308 • 1131 www.mlp-ag.com
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