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MLP SE

Quarterly Report Nov 14, 2017

289_10-q_2017-11-14_e8fa0e07-7cc8-4560-92db-6b8023cf630a.pdf

Quarterly Report

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Quarterly Group Statement for the fi rst nine months of 2017

MLP key figures

All figures in € million 3rd quarter
2017
3rd quarter
2016
9 months
2017
9 months
2016
Change
in %
MLP Group
Total revenue 140.1 135.0 440.7 418.7 5.3%
Revenue 134.7 128.8 426.3 404.5 5.4%
Other revenue 5.4 6.2 14.4 14.2 1.4%
Earnings before interest and tax (EBIT)
(before one-off exceptional costs – operating EBIT)
5.6 6.6 21.5 16.1 33.5%
Earnings before interest and tax (EBIT) 0.1 3.8 14.6 11.5 27.0%
EBIT margin (%) 0.0% 2.8% 3.3% 2.7%
Net profit 0.6 4.0 11.1 9.6 15.6%
Earnings per share (diluted/undiluted) in € 0.01 0.04 0.10 0.09 11.1%
Cashflow from operating activities 43.8 19.5 51.2 83.9 –39.0%
Capital expenditure 2.4 2.1 5.2 5.9 –11.9
Shareholders' equity 386.5 383.61 0.8%
Equity ratio (%) 18.8% 19.7%1
Balance sheet total 2,056.0 1,944.11 5.8%
Private clients (Family) 526,500 517,4001 1.8%
Corporate and institutional clients 19,600 19,2001 2.1%
Consultants 1,883 1,9401 –2.9%
Branch offices 146 1461 0.0%
Employees 1,678 1,745 –3.8%
Arranged new business
Old-age provisions (premium sum) 733.9 769.4 1,970.4 2,075.6 –5.1%
Loans mortgages 354.5 415.9 1,321.4 1,300.7 1.6%
Assets under management in € billion 32.7 31.51 3.8%

1 As of December 31, 2016.

Quarterly Group Statement for the first nine months of 2017

THE FIRST NINE MONTHS OF 2017 AT A GLANCE

  • 9M: Total revenue up 5% to € 440.7 million
  • Operating EBIT increases by 34% to € 21.5 million
  • Gains in virtually all consulting areas strongest growth recorded in the real estate brokerage (plus 59%) and wealth management (plus 14%)
  • Outlook confirmed: Operating EBIT to increase to at least € 45 million

TABLE OF CONTENTS

  • 4 Introductory notes
  • 4 Profile
  • 5 Quarterly Group statement for the first nine months of 2017
  • 6 Business performance
  • 6 Results of operations
  • 10 Financial position
  • 11 Net assets
  • 12 Segment report
  • 14 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 2017 and updates the forecast-based information of the last joint management report. The Annual Report is available on our website at www.mlp-se.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 is the partner for all financial matters – for private clients, as well as 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 management for companies

The views and expectations of our clients always represent the starting point in all 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. In advising and supporting our clients, we examine the offers of all relevant product providers in the market. Our product ratings are based on scientifically substantiated market and product analyses.

Manfred Lautenschläger and Eicke Marschollek founded MLP in 1971. Around 1,900 self-employed client consultants and just under 1,700 employees work at MLP.

Quarterly Group Statement for the first nine months of 2017

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 described in the MLP Group's 2016 Annual Report. The national economic climate, the industry situation and the competitive environment have also not changed significantly in comparison with the 2016 Annual Report.

As per the resolution of the Annual General Meeting from June 29, 2017, MLP AG was converted to a Societas Europaea (SE) with effect from September 21, 2017. The change of the stock market listing was performed on September 22, 2017. The rights of the shareholders, the company's membership in the SDAX index and the stock exchange code remain unaffected by this.

Schwarzer Familienholding GmbH was already merged with MLP SE in the first half of the year with retroactive effect from January 1, 2017. Since this time, DOMCURA AG and nordias GmbH insurance brokers are 100% subsidiaries of MLP SE alongside MLP Finanzdienstleistungen AG and FERI AG.

There were no changes to the IFRS scope of consolidation in the reporting period. Within the scope of further optimising the Group structure, the supervisory scope of consolidation was already tightened in the first half of the year. Since this time, DOMCURA AG and ZSH GmbH are classified as so-called "other companies". As a result of this, regulatory equity capital increased to around € 240 million as of September 30, 2017. In a further step, MLP Finanzdienstleistungen AG is expected to be split into the two companies MLP Banking AG and MLP Finanzberatung SE at the end of November 2017. The prerequisites for establishing the respective branches of activity from a tax perspective were put in place on September 30, 2017. In future, all regulated bank activities will be handled by MLP Banking AG, while the brokerage business will be managed by MLP Finanzberatung SE.

BUSINESS PERFORMANCE

The MLP Group recorded positive development in the first nine months of the financial year. In the first nine months and the third quarter total revenue and commission income were above the figures for the same period of the previous year. The positive trend recorded by both the wealth management and the real estate brokerage area in the first half of the year, which is disclosed under other commission and fees, also continued in the first nine months with significant growth.

As of September 30, 2017 the old-age provision area was still below the previous year. In this consulting field, MLP continues to be impacted by the significant reservations of many consumers throughout the market when it comes to signing long-term contracts. In the health insurance, we were able to increase revenue above the previous year's figure in the third quarter. Looking at the first nine months we are back on the track of stable development.

Although the first nine months of the year have become more significant in the last few years as a result of MLP's strategic further development, the seasonality of our business means that the fourth quarter continues to deliver significant profit contributions.

New clients

The activities to gain new clients continued to develop positively in the first nine months of the year. By the end of September, MLP was able to acquire 15,300 new family clients, which represents an increase of 7.0% over the same period in the previous year. Around 15% of these new clients were acquired online.

As of September 30, 2017, the MLP Group served a total of 526,500 family clients (December 31, 2016: 519,800) and 19,600 corporate and institutional clients (December 31, 2016: 19,200).

RESULTS OF OPERATIONS

Development of total revenue

In the time period from January to September, the total revenue of the MLP Group increased to € 440.7 million (€ 418.7 million). This increase was bolstered by growth in commission income to € 412.0 million (€ 388.9 million). As a result of the ongoing low interest rate environment, at € 14.3 million (€ 15.5 million) revenue from the interest rate business was below the previous year. Following € 14.2 million in the previous year, other revenue reached € 14.4 million.

Looking at the individual consulting segments, significant growth was again generated in the wealth management area, with a rise in revenue by 13.8% to € 139.8 million (€ 122.9 million). MLP is benefiting from an increase in new business both at its subsidiary FERI and its own private client business. Assets under management rose to € 32.7 billion as of September 30, 2017 (December 31, 2016: € 31.5 billion).

At € 1,970.4 million after nine months, the brokered premium sum in the old-age provision is still slightly below the previous year (€ 2,075.6 million). With € 122.0 (€ 127.2 million) million revenue is still slightly below the previous year's fi gure.

With an increase of 6.1 %, the non-life insurance segment also displayed positive development in the nine-month period. Following € 85.6 million in the previous year, revenue reached € 90.8 million at the end of September. Having recorded good development in the third quarter, in which revenue rose 6.5 % over the previous year, revenue from the health insurance segment in the fi rst nine months remained at the previous year's level at € 34.2 million (€ 34.0 million).

Revenue from the brokerage of real estate objects, which is refl ected in other commission and fees, recorded a signifi cant gain. It increased by 59.1 % to € 14.0 million after nine months (€ 8.8 million). Revenue from the loans and mortgages business also displayed positive development, increasing from € 10.4 million to € 11.2 million. Business development at MLP Hyp, which is not included in revenue from the loans and mortgages business, was also very encouraging. MLP holds a 49.8 % stake in this company, which is operated as a joint venture together with mortgage broker Interhyp. At € 1.8 million (€ 1.5 million), the share of company earnings that are attributable to MLP are signifi cantly higher as of September 30, 2017 than the previous year.

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.

Commission expenses increased to € 218.4 million (€ 201.6 million). This was largely due to the increase in commission income. At € 0.9 million (€ 1.2 million), interest expenses were below the previous year's level. The total cost of sales thereby increased to € 219.3 million (€ 202.8 million). The loan loss provisions amounted to € 1.0 million in the first nine months (€ 1.9 million). The previous year's higher figure can largely be attributed to greater amortisation in the FERI segment in the first quarter of 2016.

Administrative expenses (defined as the total of personnel expenses, depreciation/amortisation and impairment, as well as other operating expenses) remained virtually stable at € 207.6 million (€ 203.9 million). Personnel expenses in the Group were € 88.9 million (€ 89.8 million). Depreciation/amortisation and impairment was € 11.4 million (€ 10.9 million). Other operating expenses increased to € 107.3 million (€ 103.2 million). This item includes costs relating to the implementation of the Markets in Financial Instruments Directive (MiFID II) and the Insurance Distribution Directive (IDD). Following the further clarification of the requirements over the course of the year, these costs are higher after nine months than anticipated at the start of the year.

As announced at the beginning of the year, one-off expenses of approximately € 9 million will be incurred during the financial year 2017 for the further optimisation of the Group structure. MLP recorded € 6.9 million (€ 4.6 million) of these expenses in the first nine months, € 5.5 million (€ 2.8 million) of this is attributable to the third quarter. Administration costs for the first nine months are therefore € 200.7 million (€ 199.3 million).

Earnings trend

Operating earnings before interest, taxes and one-off special expenses (operating EBIT) earnings before interest and tax) increased by 33.5% to € 21.5 million (€ 16.1 million) during the first nine months. Including the one-off expenses of € 6.9 million, EBIT amounted to € 14.6 million (€ 11.5 million). The higher commission income played a key part in this positive development.

The finance cost in the reporting period was € –0.7 million (€ –0.5 million). Earnings before tax (EBT) were thereby € 13.9 million, following € 11.0 million in the previous year. The tax rate was 20.3%. Net profit amounted to € 11.1 million (€ 9.6 million). The diluted and basic earnings per share were € 0.10 (€ 0.09).

All figures in € million 9M 2017 9M 2016 Change in %
Total revenue 440.7 418.7 5.3%
Gross profit* 221.4 215.9 2.5%
Gross profit margin (%) 50.2% 51.6%
Operating EBIT 21.5 16.1 33.5%
Operating EBIT margin (%) 4.9% 3.8%
EBIT 14.6 11.5 27.0%
EBIT margin (%) 3.3% 2.7%
Finance cost –0.7 –0.5 –40.0%
EBT 13.9 11.0 26.4%
EBT margin (%) 3.2% 2.6%
Income taxes –2.8 –1.5 86.7%
Net profit 11.1 9.6 15.6%
Net margin (%) 2.5% 2.3%

Structure and changes in earnings in the Group

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

FINANCIAL POSITION

You can find detailed information on the objectives of the financial management in the MLP Group 2016 Annual Report under "Financial position"/"Objectives 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, 2017, liabilities due to clients and financial institutions in the banking business which amounted to € 1,455.6 million (December 31, 2016: € 1,308.8 million) were offset on the assets side of the balance sheet by receivables from clients and financial institutions in the banking business of € 1,332.8 million (December 31, 2016: € 1,217.5 million).

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

Liquidity analysis

Cash flow from operating activities declined to € 51.2 from € 83.9 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 € –36.3 million to € –15.5 million. More time deposits matured in the reporting period than in the same period of the previous year.

As of the end of Q3, 2017, the MLP Group has access to cash holdings of around € 309 million. A good level of liquid funds therefore remains available. 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 € 5.2 million (€ 5.9 million) in the first nine months of 2017. 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

As of September 30, 2017, the balance sheet total of the MLP Group was € 2,056.0 million (December 31, 2016: € 1,944.1 million). Receivables from clients in the banking business increased to € 691.0 million (December 31, 2016: € 626.5 million). This can essentially be attributed to the increase in promotional loans directly passed on to our clients and own-resource loans, as well as a higher investment volume in promissory note bonds. Receivables from banks in the banking business also increased to € 641.8 million as a result of higher investments in fixed-term deposits, as well as higher promissory note bonds (December 31, 2016: € 591.0 million). A lower volume of daily deposits due on demand had the opposite effect. Financial assets rose to € 173.5 million (December 31, 2016: € 162.3 million) and are essentially the result of redeployment of other forms of investment. Other receivables and assets declined to € 91.0 million (December 31, 2016: € 122.8 million). This item essentially contains commission receivables from insurers resulting from the brokerage of insurance products. 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. Cash and cash equivalents increased to € 211.7 million (December 31, 2016: € 184.8 million). This increase can be attributed to a greater investment volume at the German Bundesbank.

As of the reporting date of September 30, 2017, the shareholders' equity of the MLP Group was € 386.5 million (December 31, 2016: € 383.6 million). The balance sheet equity ratio was 18.8% (December 31, 2016: 19.7%). The drop can essentially be attributed to the pronounced increase in client deposits and the higher balance sheet total resulting from this. The equity ratio rose to 16.1% as a result of the increase in attributable equity capital. This is due to the adjustment of the supervisory scope of consolidation that was performed in the course of further optimising the Group structure.

Provisions decreased to € 83.8 million (December 31, 2016: € 91.2 million). This decrease is essentially due to lower allocations to provisions for bonus schemes. Liabilities due to clients in the banking business increased to € 1,399.4 million (December 31, 2016: € 1,271.1 million) and reflect a further increase in client deposits. Liabilities due to banks in the banking business rose to € 56.2 million (December 31, 2016: € 37.7 million). This can mainly be attributed to a higher volume of promotional loans being passed on to our clients. Other liabilities fell to € 117.4 million (December 31, 2016: € 146.9 million). Among other things, this reflects the lower liabilities from the underwriting business at DOMCURA, as well as lower commission claims of our consultants. 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 normalise 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 2016 Annual Report of the MLP Group at www.mlp-annual-report.com "Economic report"/"Segment report".

Financial services segment

At € 278.5 million, total revenue in the financial services segment is slightly above the previous year's level (€ 267.9 million). Revenue rose to € 268.1 million (€ 260.7 million). Other revenue amounted to € 10.4 million (€ 7.2 million). This includes around € 1.3 million in revenue from the transfer of costs to MLP AG within the scope of further optimising the Group structure.

Commission expenses rose to € 122.7 million (€ 115.1 million), largely due to the higher commission income, as well as greater expenses for participation programmes. Interest expenses amounted to € 0.9 million (€ 1.2 million). The cost of sales was therefore € 123.6 million (€ 116.3 million).

Following € 1.1 million in the previous year, loan loss provisions amounted to € 1.0 million. Personnel expenses declined to € 55.0 million (€ 56.1 million). Depreciation/amortisation and impairments increased to € 8.3 million (€ 7.3 million), largely due to capitalisation and writedowns in the field of IT. At € 94.8 million, other operating expenses were above the previous year's level (€ 90.4 million). This item includes around € 5.6 million in one-off expenses for further optimising the Group structure. EBIT declined to € –2.3 million (€ –1.8 million) as a result of this. This figure includes total one-off expenses of around € 4.7 million (€ 3.8 million), which were accrued within the scope of further optimising the Group structure. At € –0.5 million, the finance cost remained virtually unchanged (€ –0.4 million). EBT was € –2.8 million (€ –2.2 million).

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 increased significantly by 12.1 % to € 105.9 million (€ 94.5 million) in the first nine months, with sales revenue rising from € 91.3 million to € 102.9 million. This increase can above all be attributed to higher performance-based remuneration for the positive performance of client portfolios (performance fees). As a result of higher revenue, commission expenses increased to € 60.6 million (€ 53.0 million). The loan loss provision decreased to € 0.0 million (€ 0.7 million). The previous year's higher figure was due to a writedown on receivables in the first quarter of 2016.

At € 21.6 million (€ 21.7 million), personnel expenses remained at the previous year's level. Depreciation/amortisation and impairment was € 0.9 million (€ 1.3 million). Other operating expenses declined to € 7.8 million (€ 8.3 million). EBIT increased to € 15.0 million (€ 9.6 million) as a result of the significant improvement in revenue. With a finance cost of € 0.0 million (€ 0.2 million), EBT was € 15.0 million (€ 9.8 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 revenue and comparably high earnings in the first quarter of each year This is then typically followed by a loss from Q2 to Q4.

Revenue rose to € 59.1 million (€ 55.7 million) in the first nine months. This primarily reflects the premium volumes received. Other revenue increased € 3.3 million (€ 1.8 million). This was due to a final statement of accounts of expiring contracts with insurers that was already performed in the second quarter. As a result total revenue rose to € 62.3 million (€ 57.5 million). Commission expenses increased to € 38.8 million as a result of higher revenue (€ 36.3 million). These are essentially accrued as variable remuneration for brokerage services.

At € 16.1 million (€ 16.3 million), administration expenses remained at the same level as the previous year. Thereof personnel expenses accounted for € 10.0 million (€ 9.8 million). At € 0.9 million (€ 1.0 million), depreciation/amortisation and impairment remained at a stable level. Other operating expenses were € 5.2 million (€ 5.5 million). EBIT rose to € 7.5 million (€ 4.9 million). With an unchanged finance cost of € 0.0 million (€ 0.0 million), EBT was € 7.5 million (€ 4.9 million).

Holding segment

The Holding segment does not have active operations. Total revenue in the Holding segment declined to € 7.1 million in the first nine months (€ 11.0 million). The previous year's higher figure was essentially due to a settlement payment received in connection with a lawsuit.

Personnel expenses remained unchanged at € 2.3 million (€ 2.3 million). Depreciation/amortisation and impairment was € 1.3 million (€ 1.4 million). Other operating expenses rose to € 8.9 million (€ 8.3 million). This increase can be attributed to one-off expenses for further optimising the Group structure.

EBIT declined to € –5.4 million (€ –1.0 million), largely due to the higher other revenue in the previous year, as well as one-off expenses totalling € 2.2 million in the current year. The finance cost was € –0.3 million (€ –0.4 million). EBT therefore reached € –5.7 million (€ –1.4 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, recruiting new consultants and further training.

The number of employees declined to 1,678 (1,745) in the reporting period. The decline can essentially be attributed to a lower number of temporary staff, the effects of the efficiency programme and non-renewal of limited-term contracts that expired.

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

Segment September 30,
2017
September 30,
2016
Financial services 1,195 1,265
FERI 227 206
DOMCURA 250 268
Holding 6 6
Total 1,678 1,745

At 1,883, the number of freelance client consultants displayed a slight downward trend at the end of the first nine months (December 31, 2016: 1,940).

Forecast

Development in the first nine months of the financial year was in line with expectations. You can find details on our forecast in the "Forecast" section and under "Events after the balance sheet date" of the MLP Group Annual Report at www.mlp-annual-report.com

Taking into account anticipated one-off expenses of € 9 million for optimising the corporate structure of the Group, MLP expects to record an EBIT of at least € 36 million and an operating EBIT of at least € 45 million. The Executive Board intends to base its dividend proposal for the financial year 2017 on the operating net profit (before one-off expenses) and will maintain a distribution rate of 50 to 70 percent. MLP can now confirm this forecast after the first nine months.

We already reported in the second quarter on adjustments to our qualitative revenue development forecasts by consulting field. Accordingly, we are now anticipating slightly increasing revenue in the wealth management segment. In the health insurance segment, we expect to record stable sales revenue for the financial year. Our revenue forecasts in the old-age provision and non-life insurance segments remain unchanged. Here we are still anticipating a stable development and a slight increase respectively.

Income statement and statement of comprehensive income

Income statement for the period from January 1 to September 30, 2017

3rd quarter 3rd quarter 9 months 9 months
All figures in €'000 2017 2016 2017 2016
Revenue 134,745 128,801 426,340 404,458
Other Revenue 5,399 6,209 14,369 14,200
Total revenue 140,144 135,010 440,709 418,658
Commission expenses –68,536 –64,607 –218,382 –201,623
Interest expenses 444 –246 –895 –1,172
Loan loss provisions –571 –217 –1,016 –1,867
Personnel expenses –28,599 –29,193 –88,876 –89,824
Depreciation and impairments –3,764 –4,624 –11,354 –10,924
Other operating expenses –39,644 –33,008 –107,312 –103,200
Earnings from investments accounted for using the equity method 638 685 1,768 1,488
Earnings before interest and tax (EBIT) 111 3,800 14,642 11,537
Other interest and similar income 29 113 159 631
Other interest and similar expenses –168 –192 –880 –1,140
Finance cost –139 –79 –721 –509
Earnings before tax (EBT) –28 3,721 13,921 11,028
Income taxes 590 237 –2,820 –1,477
Net profit 562 3,957 11,101 9,552
Of which attributable to
owners of the parent company 562 3,957 11,101 9,552
Earnings per share in €*
basic/diluted 0.01 0.04 0.10 0.09

*Basis of calculation: average number of ordinary shares outstanding at September 30, 2017: 109,334,686.

Statement of comprehensive income for the period from January 1 to September 30, 2017

3rd quarter 3rd quarter 9 months 9 months
All figures in €'000 2017 2016 2017 2016
Net profit 562 3,957 11,101 9,552
Gains/losses due to the revaluation of defined benefit obligations –1,216 –3,330 1,377 –11,647
Deferred taxes on non-reclassifiable gains/losses 357 972 –404 3,400
Non reclassifiable gains/losses –859 –2,358 973 –8,247
Gains/losses from changes in the fair value of
available-for-sale securities –1,529 299 –696 –15
Deferred taxes on non-reclassifiable gains/losses 460 –85 283 –40
Reclassifiable gains/losses –1,069 215 –414 –55
Other comprehensive income –1,929 –2,144 559 –8,302
Total comprehensive income –1,366 1,814 11,660 1,250
Of which attributable to
owners of the parent company –1,366 1,814 11,660 1,250

Statement of financial position

Assets as of September 30, 2017

September 30, December 31,
All figures in €'000 2017 2016
Intangible assets 163,617 168,419
Property, plant and equipment 61,906 63,365
Investments accounted for using the equity method 3,413 3,751
Deferred tax assets 8,372 9,063
Receivables from clients in the banking business 690,980 626,479
Receivables from banks in the banking business 641,790 590,972
Financial assets 173,528 162,286
Tax refund claims 9,617 12,115
Other receivables and assets 91,049 122,776
Cash and cash equivalents 211,706 184,829
Total 2,055,978 1,944,055

Liabilities and shareholders' equity as of September 30, 2017

All figures in €'000 September 30,
2017
December 31,
2016
Shareholders' equity 386,498 383,585
Provisions 83,804 91,225
Deferred tax liabilities 9,453 9,898
Liabilities due to clients in the banking business 1,399,359 1,271,070
Liabilities due to banks in the banking business 56,249 37,720
Tax liabilities 3,198 3,646
Other liabilities 117,417 146,911
Total 2,055,978 1,944,055

Condensed statement of cash flow

Condensed statement of cash flow for the period from January 1 to September 30, 2017

All figures in €'000 9 months
2017
9 months
2016
Cash and cash equivalents at the beginning of the period 184,829 94,540
Cashflow from operating activities 51,163 83,893
Cashflow from investing activities –15,539 –36,278
Cashflow from financing activities –8,747 –13,120
Change in cash and cash equivalents 26,877 34,495
Cash and cash equivalents at the end of the period 211,706 129,035

Condensed statement of cash flow for the period from July 1 to September 30, 2017

All figures in €'000 3rd quarter
2017
3rd quarter
2016
Cash and cash equivalents at the beginning of the period 158,375 125,799
Cashflow from operating activities 43,772 19,518
Cashflow from investing activities 18,306 –16,282
Cashflow from financing activities –8,747
Change in cash and cash equivalents 53,331 3,236
Cash and cash equivalents at the end of the period 211,706 129,035

Statement of changes in equity

Statement of changes in equity for the period from January 1 to September 30, 2017

Equity attributable to MLP AG shareholders

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
385,753
9,552
–55 –8,247 –8,302
–55 –8,287 9,552 1,250
–13,120 –13,120
109,335 146,727 1,158 –17,215 133,881 373,883
109,335 146,727 1,252 –12,752 139,024 383,585
11,101 11,101
–414 973 559
–414 973 11,101 11,660
–8,747 –8,747
109,335 146,727 839 –11,779 141,378 386,498
109,335
146,727
1,212
–8,968
137,448
9,552

*Reclassifiable gains/losses.

Reportable business segments

Information regarding reportable business segments (quarterly comparison)

Financial services
All figures in €'000 3rd quarter
2017
3rd quarter
2016
Revenue 88,032 85,017
Other revenue 5,477 1,627
Total revenue 93,509 86,644
Commission expenses –41,043 –38,873
Interest expenses 444 –246
Loan loss provisions –571 –217
Personnel expenses –17,721 –17,316
Depreciation and impairments –2,787 –3,437
Other operating expenses –35,641 –29,120
Earnings from investments accounted for using the equity method 638 685
Segment earnings before interest and tax (EBIT) –3,173 –1,880
Other interests and similar income 28 14
Other interest and similar expenses –111 –80
Finance cost –83 –65
Earnings before tax (EBT) –3,256 –1,945
Income taxes
Net profit
Total Consolidation Holding DOMCURA FERI
3rd quarter 3rd quarter 3rd quarter 3rd quarter 3rd quarter 3rd quarter 3rd quarter 3rd quarter 3rd quarter 3rd quarter
2016 2017 2016 2017 2016 2017 2016 2017 2016 2017
128,801 134,745 –934 –1,217 12,110 12,911 32,608 35,019
6,209 5,399 –3,385 –3,771 5,938 2,108 1,011 739 1,017 846
135,010 140,144 –4,319 –4,988 5,938 2,108 13,122 13,651 33,625 35,865
–64,607 –68,536 870 1,219 –8,116 –8,555 –18,488 – 20,157
–246 444 1
–571 19 –19
–29,193 –28,599 –688 –553 –3,287 –3,085 –7,902 –7,239
–4,624 –3,764 –472 –397 –319 –296 –396 –284
–33,008 –39,644 3,429 3,754 –2,797 –3,374 –2,151 –2,101 –2,369 –2,282
638
111 –19 –16 1,981 –2,216 –732 –387 4,450 5,903
29 –1 –3 –7 4 7 99 1
–168 22 26 –104 –97 –1 –3 –29 18
–139 21 26 –108 –104 3 4 70 19
–28 1 10 1,873 –2,321 –729 –383 4,520 5,922
590
562

Information regarding reportable business segments (9 months comparison)

Financial services
9 months 9 months
All figures in €'000 2017 2016
Revenue 268,135 260,708
Other revenue 10,387 7,225
Total revenue 278,522 267,933
Commission expenses –122,655 –115,147
Interest expenses –895 –1,179
Loan loss provisions –1,006 –1,136
Personnel expenses –54,956 –56,089
Depreciation and impairments –8,327 –7,259
Other operating expenses –94,796 –90,444
Earnings from investments accounted for using the equity method 1,768 1,488
Segment earnings before interest and tax (EBIT) –2,345 –1,834
Other interests and similar income 100 113
Other interest and similar expenses –604 –509
Finance cost –504 –396
Earnings before tax (EBT) –2,849 –2,230
Income taxes
Net profit
Total Consolidation Holding DOMCURA FERI
9 months 9 months 9 months 9 months 9 months 9 months 9 months 9 months 9 months 9 months
2016 2017 2016 2017 2016 2017 2016 2017 2016 2017
404,458 426,340 –3,208 –3,699 55,673 59,053 91,285 102,850
14,200 14,369 –8,997 –9,436 10,951 7,076 1,826 3,291 3,196 3,051
418,658 440,709 –12,205 –13,135 10,951 7,076 57,499 62,344 94,481 105,901
–201,623 –218,382 2,808 3,661 –36,316 –38,769 –52,968 –60,618
–1,172 –895 8
–1,867 –1,016 4 –10 –734
–89,824 –88,876 –2,250 –2,329 –9,811 –9,969 –21,673 –21,622
–10,924 –11,354 –1,433 –1,267 –967 –888 –1,265 –872
–103,200 –107,312 9,305 9,418 –8,237 –8,899 –5,541 –5,231 –8,283 –7,803
1,768
11,537 14,642 –85 –56 –969 –5,419 4,867 7,477 9,557 14,985
159 –33 –24 171 46 30 23 350 13
–1,140 –880 97 91 –604 –296 –4 –36 –120 –35
–721 64 67 –433 –250 26 –13 230 –22
13,921 –20 11 –1,402 –5,669 4,893 7,465 9,787 14,963
11,028
–1,477
–2,820
11,101
9,552

Financial Calendar 2017

NOVEMBER

November 28, 2017 Company presentation at German Equity Forum in Frankfurt.

Financial Calendar 2018

FEBRUARY

February 28, 2018 Publication of the results for the financial year 2o17 – Annual analyst conference and press conference.

MARCH

March 28, 2018 Publication of the annual report for the financial year 2o17.

MAY

May 15, 2018 Publication of the financial results for the first quarter 2o18.

JUNE

June 14, 2018 Annual General Meeting (AGM) of MLP SE in Wiesloch. MLP SE holds its AGM at the Palatin Congress Center in Wiesloch.

AUGUST

August 9, 2018 Publication of the financial results for the half-year and the second quarter 2o18.

NOVEMBER

November 14, 2018 Publication of the financial results for the first nine months and the third quarter 2o18.

MLP SE Alte Heerstraße 40 69168 Wiesloch Tel +49 (0) 6222 • 308 • 8320 Fax +49 (0) 6222 • 308 • 1131 www.mlp-se.com

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