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MLP SE

Quarterly Report Nov 10, 2016

289_10-q_2016-11-10_6060d8bb-3971-4eb2-954d-e0f30f718dc3.pdf

Quarterly Report

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Quarterly Group Statement for the fi rst nine months of 2016

MLP key figures

All figures in € million 3rd quarter
2016
3rd quarter
20152
9 months
2016
9 months
20152
Change
in %
MLP Group
Total revenue 135.0 122.9 418.7 367.8 13.8%
Revenue 128.8 119.9 404.5 357.2 13.2%
Other revenue 6.2 3.0 14.2 10.6 34.0%
Earnings before interest and tax (EBIT)
(before one-off exceptional costs – operating EBIT)
6.6 –0.7 16.1 7.4 >100%
Earnings before interest and tax (EBIT) 3.8 –0.7 11.5 7.4 55.4%
EBIT margin (%) 2.8% –0.6% 2.7% 2.0%
Net profit 4.0 –2.9 9.6 3.7 >100%
Earnings per share (diluted/undiluted) in € 0.04 –0.03 0.09 0.03 >100%
Cashflow from operating activities 19.5 9.8 83.9 48.6 72.6%
Capital expenditure 2.1 3.1 5.9 8.7 –32.2%
Shareholders' equity 373.9 385.81 –3.1%
Equity ratio (%) 20.7% 22.0%1
Balance sheet total 1,808.8 1,752.71 3.2%
Private clients (Family) 514,600 510,2001 0.9%
Corporate and institutional clients 18,600 18,2001 2.2%
Consultants 1,924 1,9431 –1.0%
Branch offices 151 1561 –3.2%
Employees 1,745 1,803 –3.2%
Arranged new business
Old-age provisions (premium sum) 769.4 764.4 2,075.6 2,014.2 3.0%
Loans mortgages 415.9 473.7 1,300.7 1,372.1 –5.2%
Assets under management in € billion 30.0 29.01 3.4%

1 As of December 31, 2015.

2 As of 2016, loan loss provisions are disclosed as a separate item. For this reason, the previous year's disclosure was adjusted.

Quarterly Group Statement for the first nine months of 2016

THE FIRST NINE MONTHS OF 2016 AT A GLANCE

  • Total revenue of € 418.7 million is 14 % above the previous year and operating EBIT of € 16.1 million more than doubled compared to previous year
  • Old-age provision: MLP records slight gains two quarters in succession
  • Wealth management: Assets under management reached the € 30 billion mark for the first time
  • Outlook: As announced, EBIT level to rise again significantly from 2017

TABLE OF CONTENTS

  • 4 Introductory notes
  • 4 Profile
  • 5 Quarterly group statement for the first nine months of 2016
  • 5 Business performance
  • 6 Results of operations
  • 10 Financial position
  • 11 Net assets
  • 12 Segment report
  • 15 Employees and self-employed client consultants
  • 16 Income statement and statement of comprehensive income
  • 17 Statement of financial position
  • 18 Condensed statement of cash flow
  • 19 Statement of changes in equity
  • 20 Reportable business segments

Introductory notes

This quarterly group statement presents the key events and business transactions of the first nine months of 2016 and updates forecast-based information in the last joint management report. The Annual Report is available on our website at www.mlp-ag.com and also at www.mlp-annual-report.com.

In the description of the MLP Group's financial position, net assets and results of operations pursuant to International Financial Reporting Standards (IFRS), the previous year's figures are given in brackets.

The information in this quarterly Group statement has neither been verified by an auditor nor subjected to a review.

Profile

The MLP Group – The partner for all financial matters

The MLP Group is the partner for all financial matters – for private clients as well as for companies and institutional investors. With our four brands, each of which enjoys a leading position in their respective markets, we offer a broad range of services:

  • MLP Finanzdienstleistungen AG: The dialogue partner for all financial matters
  • FERI AG: The investment expert for institutional investors and high net-worth individuals
  • DOMCURA AG: The underwriting agency focusing on private and commercial non-life insurance products
  • TPC GmbH: The specialist in occupational pension provision management for companies

The views and expectations of our clients always represent the starting point in each of these fields. Building on this, we then present our clients with suitable options in a comprehensible way so that they can make the right financial decisions themselves. For the implementation we examine the offers of all relevant product providers in the market. Our products are selected and rated on the basis of scientifically substantiated market and product analyses.

Manfred Lautenschläger and Eicke Marschollek founded MLP in 1971. Just under 2,000 client consultants and almost 1,800 employees work at MLP.

Quarterly Group Statement for the first nine months of 2016

The values disclosed in the following quarterly statement have been rounded to one decimal place. As a result, differences to reported total amounts may arise when adding up the individual values.

In the course of the reporting period no changes occurred to the fundamental principles of the group as described in the MLP Group's 2015 Annual Report. The national economic climate, the industry situation and the competitive environment have also not changed significantly in comparison with the 2015 Annual Report.

The figures from the same quarter in the previous year are only partially comparable with the current results from the first nine months of 2016, particularly with regard to revenues in the non-life insurance area. This is because the DOMCURA Group was only included in the consolidation scope of the MLP Group from end of July 2015.

The following changes to the scope of consolidation occurred in the first nine months. Our subsidiary FERI AG announced the sale of FERI Eurorating Services AG to Scope Corporation AG on June 30, 2016. The transaction was then concluded on August 1, 2016. FERI is now continuing to focus on its core strengths of investment management, investment consulting and investment research, as well as on strategic further development to become the leading investment company in Germany, Luxembourg, Switzerland and Austria.

In the course of the ongoing focus on the corporate structure in the DOMCURA Group, Ralf W. Barth GmbH and F&F Makler AG were merged with nordias GmbH Versicherungsmakler.

BUSINESS PERFORMANCE

The MLP Group recorded positive business development in the first nine months of the year. Compared to the previous year, in part significant gains were made in the relevant KPIs. Total revenue and commission income were both above the same period of the previous year. The old-age provision area, the wealth management area and the non-life insurance area all recorded gains in the third quarter. Looking at the first nine months, the old-age provision area was able to maintain the same level as in the previous year despite a one-off positive effect in Q1 of the previous year and was thereby able to continue to buck the negative market trend. Sales revenues in the wealth management business were slightly above the previous year. The non-life insurance are more than doubled its revenue, primarily due to the revenue contributions from DOMCURA. The health insurance business recorded a slight increase at the end of the first nine months and thereby continued to display better development than the market. In the loans and mortgages area, it was not quite possible to reach the previous year's record result. Other commission and fees, an item that primarily reflects brokerage of real estate, was considerably below the previous year.

With the acquisition of the DOMCURA Group at the end of July 2015, the results of the first nine months are now more important than in previous years. This is because the new subsidiary generates most of its earnings in the first three months of each year. It then records a loss in quarters two to four, as the non-life insurance premiums are largely collected at the start of the year. However, the fourth quarter still remains the most important overall for the MLP Group. This is when a large proportion of total revenue and earnings are generated in the financial services segment.

New clients

The activities to gain new clients continued to develop positively in the first nine months of the year. As announced well in advance, the MLP Group has adapted the way it counts clients to the enhanced Group structure. Since Q1 2016 we have differentiated in our reporting according to family clients served at MLP Finanzdienstleistungen AG and in the FERI Group, and according to corporate and institutional clients. These include clients in the field of occupational pension provision as well as institutional clients at FERI and sales partners at DOMCURA. On the basis of this definition, the MLP Group served 514,600 family clients at the end of September (December 31, 2015: 510,200). In the first nine months of the year, the gross number of newly acquired family clients increased by 8.4% to 14,200 (13,100). In addition, the MLP Group provided its services for 18,600 corporate and institutional clients (December 31, 2015: 18,200).

RESULTS OF OPERATIONS

Development of total revenue

In the time period from January to September, the total revenue of the MLP Group increased to € 418.7 million (€ 367.8 million). Commission income, which increased by 14.0% to € 388.9 million (€ 341.1 million), made the greatest contribution to this. Revenue from the interest rate business of € 15.5 million (€ 16.1 million) was slightly below the previous year's level. Following € 10.6 million in the previous year, other revenue stood at € 14.2 million. This increase can essentially be attributed to a settlement payment in legal proceedings.

When examining the individual fields of consulting, the non-life insurance area continues to display significant growth with revenues having more than doubled to € 85.6 million (€ 36.7 million). Around € 54.3 million of this can be attributed to the subsidiary DOMCURA, which was acquired in July 2015. When examining the same period of the previous year, the revenue contribution was around € 6.4 million, as the first consolidation of the new subsidiaries only took place in the third quarter of 2015.

At € 127.2 million after the fi rst nine months (€ 128.0 million), revenues in the old-age provision area were able to get back to the previous year's level despite a one-off positive effect in the fi rst quarter of 2015. As communicated in the report on Q1 2015, this is due to correction of an incorrect settlement by a product partner. The brokered premium sum of new business increased by 3.0 % to € 2,075.6 million (€ 2,014.2 million).

In the wealth management business, assets under management reached the € 30.0 billion mark for the fi rst time in company history at the end of the third quarter (June 30, 2016: € 29.3 billion). At € 122.9 million (€ 121.3 million), revenue in the wealth management business was slightly above the previous year. This can largely be attributed to a signifi cant increase in revenues in the third quarter.

Revenue in the health insurance area was € 34.0 million after the first nine months (€ 33.6 million). Following the record level set in the previous year, revenue from the loans and mortgages business reached € 10.4 million (€ 11.1 million). In this fi eld of consulting, the requirements of the EU Mortgage Credit Directive (Wohnimmobilienkreditrichtlinie, WiKR) that has been in place since March 2016 have had a negative impact on business throughout the market. Other commission and fees generated € 8.8 million, following € 10.4 million in the same period of the previous year. The demand for real estate objects exceeded the current portfolio that MLP was able to provide for clients here. For this reason MLP already included further project partners in its brokerage activities in the course of the second quarter and is continuously examining others.

Business development at MLP Hyp GmbH still was very encouraging in the fi rst nine months of the year. MLP holds a 49.8 % stake in this company, which is operated as a joint venture together with mortgage broker Interhyp. At € 1.5 million, the earnings of the company that are attributable to MLP are above the previous year's already high level (€ 1.4 million). This is refl ected in the income statement under the item "Earnings from investments accounted for using the equity method" and is therefore not part of the revenue from the loans and mortgages business.

Analysis of expenses

Commission expenses primarily comprise performance-linked commission payments to consultants. This item also includes the commissions paid in the DOMCURA segment. These variable expenses occur due to the remuneration of brokerage services in the non-life insurance business. Added to these are the commissions paid in the FERI segment, which in particular result from the activities in the field of fund administration. Variable expenses are, for example, accrued in this business segment due to remuneration of the depository bank and fund sales.

Set against the background of increased commission income, commission expenses increased to € 201.6 million in the first nine months of 2016 (€ 167.4 million). As is the case with commission income, the increase can essentially be attributed to the new subsidiary DOMCURA, which was acquired last year. At € 1.2 million, interest expenses were slightly below the previous year's level (€ 1.4 million). The total cost of sales thereby increased to € 202.8 million (€ 168.8 million).

Loan loss provisions, which MLP has disclosed in a dedicated item since Q1 2016, were € 1.9 million (€ 0.9 million) after the first nine months of 2016. This is largely due to a greater write-down on receivables in the FERI segment, which was already accrued in the first quarter of 2016.

Administrative expenses (defined as the sum of personnel expenses, depreciation/amortisation and impairment, as well as other operating expenses) increased to € 203.9 million (€ 192.1 million). This includes administrative expenses at DOMCURA of € 16.3 million (€ 3.6 million). DOMCURA was only included in the consolidation scope in the course of the third quarter of 2015. Personnel expenses in the MLP Group were € 89.8 million (€ 81.0 million). Other operating expenses were € 103.2 million (€ 99.3 million). Both of these increases can essentially be attributed to the expenses accrued at DOMCURA. Depreciation/amortisation and impairment amounted to € 10.9 million, following € 11.8 million in the previous year. However, the previous year's figure included impairment losses on a let building in Q2.

As announced at the start of the year, one-off expenses of approximately € 15 million will be incurred through planned efficiency measures during the financial year 2016. MLP recorded € 4.6 million of these expenses in the first nine months of the year, which are distributed fairly equally across the items of "Personnel expenses", "Depreciation and impairments" and "Other operating expenses".

Earnings trend

Operating earnings before interest, taxes and one-off special expenses (operating EBIT) more than doubled to € 16.1 million (€ 7.4 million) in the first nine months. Including the oneoff expenses of € –4.6 million, EBIT amounted to € 11.5 million (€ 7.4 million). The higher commission income and higher other revenue played a key part in this positive development.

At € –0.5 million (€ –2.3 million), finance cost improved significantly. Reason for the one-off expenses in the previous year were interest payments on a retrospective tax payment. Earnings before tax (EBT) were thereby € 11.0 million, following € 5.0 million in the previous year. The tax rate was 13.4%. For the period of the previous year it was 27.5% due to a retrospective tax payment as a result of a regular tax audit. At the same time an altered profit appropriation had a reducing effect on the tax rate during the year. Net profit amounted to € 9.6 million (€ 3.7 million). The diluted and basic earnings per share were € 0.09 (€ 0.03).

All figures in € million 9 months 2016 9 months 2015 Change in%
Total revenue 418.7 367.8 13.8%
Gross profit1 215.9 199.0 8.5%
Gross profit margin (%) 51.6% 54.1%
Operating EBIT 16.1 7.4 >100%
Operating EBIT margin (%) 3.8% 2.0%
EBIT 11.5 7.4 55.4%
EBIT margin (%) 2.7% 2.0%
Finance cost –0.5 –2.3 –78.3%
EBT 11.0 5.0 >100%
EBT margin (%) 2.6% 1.4%
Income taxes –1.5 –1.4 7.1%
Net profit 9.6 3.7 >100%
Net margin (%) 2.3% 1.0%

Structure and changes in earnings in the Group

1 Definition: Gross profit is the result of total revenue less commission expenses and interest expenses.

FINANCIAL POSITION

You can find detailed information on the aims of the financial management in the MLP Group 2015 Annual Report under "Financial position" / "Aims of financial management" at www.mlp-annual-report.com.

Financing analysis

The MLP business model is comparatively low in capital intensity and generates high cash flows. However, increased capital requirements have been budgeted in order to meet the revised definition of equity and stricter requirements of Basel III.

At present, we are not using any borrowed funds in the form of securities or promissory note bond issues to finance the Group long-term. Our non-current assets are financed in part by noncurrent liabilities. Current liabilities due to clients and banks in the banking business represent further refinancing funds that are generally available to us in the long term.

As of September 30, 2016, liabilities due to clients and banks in the banking business of € 1,232.5 million (December 31, 2015: € 1,125.7 million) were offset on the assets side of the balance sheet by receivables from clients and financial institutions in the banking business of € 1,163.4 million (December 31, 2015: € 1,143.0 million).

We did not perform any increase in capital stock in the reporting period.

Liquidity analysis

Cash flow from operating activities increased to € 83.9 from € 48.6 million in the same period of the previous year. Here, significant cash flows result from the deposit business with our clients and from the investment of these funds.

Cash flow from investing activities changed from € –5.8 million to € –36.3 million. A higher volume of new investments in time deposits were made in the reporting period than in the same period of the previous year.

As at the end of the third quarter 2016, the MLP Group has cash and cash equivalents of around € 212 million. The liquidity situation therefore remains good. There are sufficient cash reserves available to the MLP Group. Alongside cash holdings, free lines of credit are also in place.

Capital expenditure analysis

The investment volume of the MLP Group was € 5.9 million (€ 8.7 million) in the first nine months of 2016. The vast majority of investments were made in the financial services segment focusing in particular on investments in software and IT.

NET ASSETS

Analysis of the asset and liability structure

On the reporting date, September 30, 2016, the balance sheet total of the MLP Group was € 1,808.8 million (€ 1,752.7 million). On the assets side of the balance sheet, changes essentially affected the following items: Receivables from clients in the banking business increased to € 613.2 million (€ 542.7 million). This increase can largely be attributed to an increase in loan exposure. Receivables from banks in the banking business declined to € 550.2 million (€ 600.3 million). This decrease can mainly be attributed to higher deposits at the Deutsche Bundesbank as well as increased financial investments. Financial investments increased to € 162.8 million (€ 147.9 million) due to redeployment of other forms of investment. The tax refund claim declined to € 12.9 million (€ 14.9 million). This can be attributed to a reimbursement of corporation tax overpayments. Other receivables and assets essentially comprise receivables from insurers for whom we broker insurance policies. Due to the typically strong year-end business, these increase considerably at the end of the year and then decline again during the course of the following financial year. This item declined to € 87.5 million on the reporting date (December 31, 2015: € 112.5 million). Cash and cash equivalents increased to € 129.0 million as a result of reporting-date factors (December 31, 2015: € 77.5 million), reflecting a temporarily increased level of deposits at Deutsche Bundesbank. At the same time, this item is positively influenced by the contributions of the profit/loss transfer agreements in place, while among others the payment of dividends had a negative impact.

On the reporting date, September 30, 2016, the shareholders' equity of the MLP Group was € 373.9 million (December 31, 2015: € 385.8 million). This decrease can essentially be attributed to the € 13.1 million total dividend payout to our shareholders in June of this year. The balance sheet equity ratio was 20.7% (December 31, 2015: 22.0%).

At € 84.1 million (December 31, 2015: € 86.5 million), provisions remained slightly below the previous year's level. Liabilities due to clients in the banking business rose to € 1,199.1 million, essentially as a result of increased client deposits (December 31, 2015: € 1,102.6 million). Liabilities due to banks in the banking business rose to € 33.4 million (December 31, 2015: € 23.1 million), essentially due to the increased refinancing investments. Other liabilities declined to € 103.5 million (December 31, 2015: € 140.2 million). Due to our typically strong year-end business, the commission claims of our consultants increase markedly on the balance sheet date, December 31, and then decline again in the subsequent quarters.

SEGMENT REPORT

The financial services segment reflects revenue from all fields of consulting – i.e. old-age provision, health and non-life insurance, wealth management and loans & mortgages. The FERI segment primarily generates revenue from the wealth management field of consulting, while the DOMCURA segment generates most of its revenue from the non-life insurance business. You can find a detailed description of the individual segments in the 2015 Annual Report of the MLP Group at www.mlp-annual-report.com "Economic report" / "Segment report".

Financial services segment

At € 267.9 million (€ 270.4 million), total revenue in the financial services segment remained at the previous year's level. Here it is important to note that the previous year's figure was positively influenced by a one-off effect in the old-age provision segment in the first quarter of 2015. Sales revenues were € 260.7 million (€ 263.3 million). At € 7.2 million (€ 7.1 million), other revenue remained virtually unchanged.

Commission expenses were € 115.1 million (€ 112.7 million). Among other factors, the slight increase can be attributed to effects of the remuneration model introduced last year within the scope of our recruiting measures. At € 1.2 million, interest expenses are slightly below the previous year (€ 1.4 million). This is due to the ongoing period of low interest rates. At € 56.1 million, personnel expenses remained virtually unchanged (€ 55.3 million). Depreciation/amortisation and impairment were € 7.3 million (€ 7.6 million). Other operating expenses were € 90.4 million, following € 89.5 million in the previous year.

EBT declined to € –1.8 million (€ 4.6 million). The measures implemented to date within the scope of the efficiency programme had a negative impact with non-recurring expenses of around € –3.8 million in the first nine months. Operating EBIT was therefore € 2.0 million. The previous year's figure was also positively influenced by the described one-off effect in the old-age provision segment.

The finance cost amounted to € –0.4 million (€ –0.2 million). EBT was therefore € –2.2 million, following € 4.4 million in the previous year.

FERI segment

The FERI segment represents the activities of the FERI Group. Revenue is primarily generated in this segment from the wealth management field of consulting.

Total revenue in the FERI segment was € 94.5 million, following € 93.5 million in the previous year. After Q1 and Q2 were well below the equivalent quarters in the previous year due to difficult capital market development, the performance-based remuneration for the performance of client portfolios (performance fees) in Q3 increased significantly above the level recorded in the same quarter of the previous year and reached the level recorded in 2014.

At € 53.0 million (€ 52.7 million), commission expenses remained at the previous year's level. Loan loss provisions were € 0.7 million (€ 0.0 million) and can be attributed to a write-down on receivables in the first quarter of the year. At € 31.3 million (€ 31.9 million), administrative expenses remained slightly below the previous year's level. However, personnel expenses remained stable at € 21.7 million (€ 21.3 million) and depreciation/amortisation and impairment charges remained unchanged at € 1.3 million (€ 1.3 million). Other operating expenses dropped to € 8.3 million (€ 9.3 million). Among others, higher consulting costs within the scope of acquiring the license to operate as a capital management company (KVG), played a part in the previous year.

EBIT increased to € 9.6 million (€ 8.9 million) due to higher revenues. The measures implemented to date within the scope of the efficiency programme had a negative impact with one-off costs of around € –0.2 million in the first nine months. Operating EBIT was therefore € 9.8 million. With a finance cost of € 0.2 million (€ –0.1 million), EBT was € 9.8 million (€ 8.7 million).

DOMCURA segment

The DOMCURA segment primarily generates revenue from the brokering of non-life insurance. DOMCURA's business model is characterised by a high degree of seasonality. Accordingly, the subsidiary records high sales revenue and comparably high earnings in the first quarter of each year. This is then followed by a loss in Q2 to Q4. Since DOMCURA was only included in the Group consolidation scope from end of July 2015, any comparisons with the results of the first nine months in the previous year are of limited usefulness.

Sales revenues were € 55.7 million (€ 6.7 million) in the first nine months. This primarily reflects the premium volumes received. With other revenue of € 1.8 million (€ 0.2 million), total revenue was € 57.5 (€ 6.9 million).

Commission expenses amounted to € 36.3 million (€ 4.3 million). These are essentially accrued as variable remuneration for brokerage services. Administrative expenses were € 16.3 million (€ 3.6 million). € 9.8 million (€ 2.0 million) of these costs are attributable to personnel expenses. Depreciation/amortisation and impairment amounted to € 1.0 million (€ 0.3 million). Other operating expenses were € 5.5 million (€ 1.3 million).

EBIT amounted to € 4.9 million (€ –0.9 million). EBT was also € 4.9 million (€ –0.9 million).

Holding segment

The Holding segment does not have active operations. At € 11.0 million (€ 8.2 million), total revenue generated in the first nine months was significantly above the previous year's level. This increase can essentially be attributed to a settlement payment in legal proceedings. However, lower revenue from the letting of buildings served to counteract this.

At € 2.3 million (€ 2.4 million), personnel expenses remained at the previous year's level. Depreciation and impairment expenses declined to € 1.4 million (€ 2.6 million). The previous year's higher figure was the result of a greater one-off write-down due to revaluation of a property in the previous year. At € 8.2 million, other operating expenses also remained at the previous year's level (€ 8.1 million).

Due to greater total revenue, EBIT was € –1.0 million (€ –5.1 million) after the first nine months of the year. The measures implemented to date within the scope of the efficiency programme had a negative impact with one-off costs of around € –0.7 million in the first nine months. Operating EBIT was therefore € –0.3 million. The finance cost was € –0.4 million, following € –2.1 million in the previous year. The tax effect already described had a significant negative impact on the previous year's earnings. EBT was € –1.4 million (€ –7.2 million).

EMPLOYEES AND SELF-EMPLOYED CLIENT CONSULTANTS

As MLP is a knowledge-based service provider, qualified and motivated employees and consultants represent the most important foundation for sustainable company success. The focus is therefore on continuous further development of personnel work, qualifications and further training, as well as recruiting new consultants.

The number of employees in the MLP Group fell to 1,745 in the reporting period (September 30, 2015: 1,803). This development can be attributed to two key factors. The first focuses on the effects of the efficiency programme and a reduction in the number of temporary staff in the financial services segment. This figure dropped to 42 in the period under review (September 30, 2015: 75). The second revolves around the sale of FERI EuroRating, with the closing completed on August 1, 2016 and which had an impact on the number of employees in the FERI segment.

Segment September 30,
2016
September 30,
2015
Financial services 1,265 1,302
FERI 206 234
Holding 6 7
Total (without DOMCURA) 1,477 1,543
DOMCURA 268 260
Total (with DOMCURA) 1,745 1,803

Development of number of employees by segment (excluding MLP consultants)

At 1,924, the number of freelance client consultants displayed a slight downward trend at the end of the first nine months (December 31, 2015: 1,943), but was still higher than the number from the comparable period in the previous year (September 30, 2015: 1.922).

Forecast

Development in the first nine months was in line with expectations. Following on from the first nine months of the year, we remain committed to the statements made in the forecast section of the 2015 Annual Report. You can find details on our forecast in the Annual Report of the MLP Group at www.mlp-annual-report.com.

Income statement and statement of comprehensive income

Income statement for the period from January 1 to September 30, 2016

3rd quarter 3rd quarter 9 months 9 months
All figures in €'000 2016 2015* 2016 2015*
Revenue 128,801 119,895 404,458 357,217
Other Revenue 6,209 2,956 14,200 10,576
Total revenue 135,010 122,851 418,658 367,793
Commission expenses –64,607 –59,123 –201,623 –167,426
Interest expenses –246 –516 –1,172 –1,357
Loan loss provisions –217 –228 –1,867 –875
Personnel expenses –29,193 –26,625 –89,824 –80,992
Depreciation and impairments –4,624 –2,927 –10,924 –11,806
Other operating expenses –33,008 –34,700 –103,200 –99,327
Earnings from investments accounted for using the equity method 685 538 1,488 1,371
Earnings before interest and tax (EBIT) 3,800 –729 11,537 7,380
Other interest and similar income 113 193 631 396
Other interest and similar expenses –192 –2,233 –1,140 –2,740
Finance cost –79 –2,040 –509 –2,344
Earnings before tax (EBT) 3,721 –2,769 11,028 5,037
Income taxes 237 –134 –1,477 –1,385
Net profit 3,957 –2,904 9,552 3,652
Of which attributable to
owners of the parent company 3,957 –2,904 9,552 3,652
Earnings per share in €**
basic/diluted 0.04 –0.03 0.09 0.03

*As of 2016, loan loss provisions are disclosed as a separate item. For this reason, the previous year´s disclosure was adjusted. **Basis of calculation: average number of ordinary shares outstanding at September 30, 2016: 109,334,686.

Statement of comprehensive income for the period from January 1 to September 30, 2016

3rd quarter 3rd quarter 9 months 9 months
All figures in €'000 2016 2015 2016 2015
Net profit 3,957 –2,904 9,552 3,652
Gains/losses due to the revaluation of defined benefit obligations –3,330 1,602 –11,647 1,602
Deferred taxes on non-reclassifiable gains/losses 972 –468 3,400 –468
Non reclassifiable gains/losses –2,358 1,134 –8,247 1,134
Gains/losses from changes in the fair value of
available-for-sale securities 299 –128 –15 –356
Deferred taxes on non-reclassifiable gains/losses –85 –47 –40 66
Reclassifiable gains/losses 215 –175 –55 –290
Other comprehensive income –2,144 959 –8,302 844
Total comprehensive income 1,814 –1,945 1,250 4,496
Of which attributable to
owners of the parent company 1,814 –1,945 1,250 4,496

Statement of financial position

Assets as of September 30, 2016

September 30, December 31,
All figures in €'000 2016 2015
Intangible assets 169,839 174,504
Property, plant and equipment 63,545 65,745
Investments accounted for using the equity method 3,133 3,481
Deferred tax assets 10,634 7,033
Receivables from clients in the banking business 613,215 542,696
Receivables from banks in the banking business 550,240 600,339
Financial assets 162,767 147,916
Tax refund claims 12,868 14,893
Other receivables and assets 87,478 112,531
Cash and cash equivalents 129,035 77,540
Non-current assets held for sale 6,040 6,040
Total 1,808,795 1,752,719

Liabilities and shareholders' equity as of September 30, 2016

September 30, December 31,
All figures in €'000 2016 2015
Shareholders' equity 373,883 385,753
Provisions 84,058 86,536
Deferred tax liabilities 10,240 10,549
Liabilities due to clients in the banking business 1,199,056 1,102,569
Liabilities due to banks in the banking business 33,433 23,095
Tax liabilities 4,596 4,006
Other liabilities 103,529 140,211
Total 1,808,795 1,752,719

Condensed statement of cash flow

Condensed statement of cash flow for the period from January 1 to September 30, 2016

All figures in €'000 9 months
2016
9 months
2015
Cashflow from operating activities 83,893 48,591
Cashflow from investing activities –36,278 –5,796
Cashflow from financing activities –13,120 –18,339
Change in cash and cash equivalents 34,495 24,456
Cash and cash equivalents at the end of the period 129,035 96,574

Condensed statement of cash flow for the period from July 1 to September 30, 2016

All figures in €'000 3rd quarter
2016
3rd quarter
2015
Cashflow from operating activities 19,518 9,846
Cashflow from investing activities –16,282 –9,394
Cashflow from financing activities
Change in cash and cash equivalents 3,236 451
Cash and cash equivalents at the end of the period 129,035 96,574

Statement of changes in equity

Statement of changes in equity for the period from January 1 to September 30, 2016

Equity attributable to MLP AG shareholders

All figures in €'000 Share capital Capital reserves Gains/losses
from changes in
the fair value of
available-for-sale
securities*
Revaluation gains/
losses related
to defined benefit
obligations after
taxes
Retained
earnings
Total
shareholders
equity
As of January 1, 2015 107,878 142,184 1,460 –10,730 136,004 376,795
Dividend –18,339 –18,339
Increase of capital – §202 of the
German Stock Corporation Act
(AktG)
1,457 4,543 6,000
Transactions with owners 1,457 4,543 –18,339 –12,339
Net profit 3,652 3,652
Other comprehensive
income after taxes
–290 1,134 844
Total comprehensive income –290 1,134 3,652 4,496
As of September 30, 2015 109,335 146,727 1,170 –9,596 121,317 368,952
As of January 1, 2016 109,335 146,727 1,212 –8,968 137,448 385,753
Dividend –13,120 –13,120
Transactions with owners –13,120 –13,120
Net profit 9,552 9,552
Other comprehensive
income after taxes
–55 –8,247 –8,302
Total comprehensive income –55 –8,247 9,552 1,250
As of September 30, 2016 109,335 146,727 1,158 -17,215 133,881 373,883

*Reclassifiable gains/losses.

Reportable business segments

Information regarding reportable business segments (quarterly comparison)

Financial services
All figures in €'000 3rd quarter
2016
3rd quarter
2015*
Revenue 85,017 85,921
Other revenue 1,627 1,518
Total revenue 86,644 87,439
Commission expenses –38,873 –38,621
Interest expenses –246 –516
Loan loss provisions –217 –236
Personnel expenses –17,316 –17,564
Depreciation and impairments –3,437 –1,721
Other operating expenses –29,120 –30,499
Earnings from investments accounted for using the equity method 685 538
Segment earnings before interest and tax (EBIT) –1,880 –1,180
Other interests and similar income 14 11
Other interest and similar expenses –80 –91
Finance cost –65 –80
Earnings before tax (EBT) –1,945 –1,260
Income taxes
Net profit

*As of 2016, loan loss provisions are disclosed as a separate item. For this reason, the previous year´s disclosure was adjusted.

Total Consolidation Holding DOMCURA FERI
3rd quarter
2015*
3rd quarter
2016
3rd quarter
2015
3rd quarter
2016
3rd quarter
2015
3rd quarter
2016
3rd quarter
2015
3rd quarter
2016
3rd quarter
2015
3rd quarter
2016
119,895 128,801 –908 –934 6,725 12,110 28,157 32,608
2,956 6,209 –2,846 –3,385 2,651 5,938 155 1,011 1,478 1,017
122,851 135,010 –3,754 –4,319 2,651 5,938 6,880 13,122 29,635 33,625
–59,123 –64,607 771 870 –4,323 –8,116 –16,950 –18,488
–516 –246 1 1
–217 8 19 –19
–26,625 –29,193 –633 –688 –1,967 –3,287 –6,461 –7,902
–4,624 –496 –472 –272 –319 –437 –396
–34,700 –33,008 2,936 3,429 –2,467 –2,797 –1,265 –2,151 –3,405 –2,369
685
3,800 –46 –19 –946 1,981 –940 –732 2,383 4,450
113 –2 –1 174 –3 5 4 5 99
–2,233 –192 39 22 –2,141 –104 0 –1 –40 –29
–79 38 21 –1,967 –108 5 3 –36 70
3,721 –8 1 –2,913 1,873 –935 –729 2,347 4,520
237
3,957

Information regarding reportable business segments (9 months comparison)

Financial services
9 months
9 months
All figures in €'000 2016
2015*
Revenue 260,708
263,320
Other revenue 7,225
7,116
Total revenue 267,933
270,436
Commission expenses
–115,147
–112,650
Interest expenses –1,179
–1,359
Loan loss provisions –1,136
–725
Personnel expenses –56,089
–55,327
Depreciation and impairments –7,259
–7,600
Other operating expenses –90,444
–89,514
Earnings from investments accounted for using the equity method 1,488
1,371
Segment earnings before interest and tax (EBIT) –1,834
4,632
Other interests and similar income 113
144
Other interest and similar expenses –509
–385
Finance cost –396
–241
Earnings before tax (EBT) –2,230
4,391
Income taxes
Net profit

*As of 2016, loan loss provisions are disclosed as a separate item. For this reason, the previous year´s disclosure was adjusted.

FERI DOMCURA Holding Consolidation
9 months 9 months 9 months 9 months 9 months 9 months 9 months 9 months 9 months
2016 2015* 2016 2015* 2016 2015* 2016 2015 2016
91,285 89,879 55,673 6,725 –3,208 –2,708 404,458
3,196 3,623 1,826 155 10,951 8,180 –8,997 –8,497 14,200
94,481 93,502 57,499 6,880 10,951 8,180 –12,205 –11,205 418,658
–52,968 –52,740 –36,316 –4,323 2,808 2,287 –201,623
8 2 –1,172
–734 –22 4 8 –137 –1,867
–21,673 –21,291 –9,811 –1,967 –2,250 –2,408 –89,824
–1,265 –1,307 –967 –272 –1,433 –2,626 –10,924
–8,283 –9,290 –5,541 –1,265 –8,237 –8,103 9,305 8,845 –103,200
1,488
9,557 8,852 4,867 –940 –969 –5,094 –85 –71 11,537
350 22 30 5 171 254 –33 –29 631
–120 –128 –4 0 –604 –2,373 97 146 –1,140
230 –105 26 5 –433 –2,119 64 117 –509
9,787 8,747 4,893 –935 –1,402 –7,212 –20 46 11,028
–1,477
9,552

Financial Calendar 2016

NOVEMBER

November 22, 2o16 Company presentation at German Equity Forum in Frankfurt.

Financial Calendar 2017

FEBRUARY

February 23, 2o17 Publication of the results for the financial year 2o16 – Annual analyst conference and press conference in Frankfurt.

MARCH

March 23, 2o17 Publication of the annual report for the financial year 2o16.

MAY

May 11, 2o17 Publication of the financial results for the first quarter 2o17.

JUNE

June 29, 2o17 Annual General Meeting (AGM) of MLP AG in Wielsoch MLP AG holds its AGM at the Palatin Congress Center in Wiesloch.

AUGUST

August 10, 2o17 Publication of the financial results for the half-year and the second quarter 2o17.

NOVEMBER

November 14, 2o17 Publication of the financial results for the first nine months and the third quarter 2o17.

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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