Titel der Schulungspräsentation

Germany's leading independent
consulting company
Reinhard Loose, CFO
Roadshow
Page 1 London, November
MLP – Company
18, 2013
Presentation
Agenda
y MLP at a glance
3
y Business model
6
y Key Financials
17
y MLP AG Share
23
y Outlook
25
Page 2
MLP – Company Presentation
MLP – An Overview
Company profile
Germany's leading financial consulting company with more than 825,000 private and 5,000
corporate clients and around 2,000 consultants. Independent from Insurance companies,
banks and investment firms. Clearly focused target group of academics, HNWI, corporate
clients as well as institutional investors
Business model
Old-age provision
Brokered premium sum for new business of € 4.8 billion in 2012. Occupational
pension provision accounted for 13 % of this figure, supported by the expertise of
our subsidiary TPC GmbH
Share of
revenue ‘12
55%
Health insurance
Private health insurance, supplementary private health insurance, long-term care,
occupational health insurance, statutory health insurance
12%
Wealth Management
€ 23.7 billion in assets under management as of September 30, 2013. Together
with subsidiary Feri AG, MLP serves private clients – affluent clients at MLP,
HNWI at Feri – as well as institutional investors
23%
Top Financials
2012:
Total revenue:
EBIT:
Net profit:
Dividend per share:
€ 568.0 million
€ 74.1 million
€ 52.7 million
€ 0,32
Share
Shares outstanding:
Free Float:
Average trading volume:
107,877,738
37.71 % (Definition Deutsche Börse)
46,200 (Xetra, per day in 2013)
Page 3
MLP – Company Presentation
Equity Ratio:
Core Capital Ratio:
26.0%
17.2%
Milestones in the corporate history
The MLP Group
1988
Stock
market
flotation
2004
Formation of the “company
pensions” business division
1999
Foundation of the
MLP Corporate
University (CU)
1971
Foundation MLP
(Marschollek, Lautenschläger
und Partner)
Page 4
2007
Registration as
independent broker; Full
banking licence for MLP
FDL AG
2006
Shareholding in
Feri Finance AG
2005
Increased independence –
Sales of insurance
subsidiaries
MLP – Company Presentation
2011
MLP acquires the
remaining shares in
Feri as scheduled
2009
Expansion of
market share
among dentists –
ZSH acquisition
2008
Increase in company
pension activities –TPC
acquisition
2013
MLP CU
gained FIBAA
certification
2012
MLP is
accredited as a
provider of
training for the
qualification of
Certified
Financial
Planner
Agenda
y MLP at a glance
3
y Business model
6
y Key Financials
17
y MLP AG Share
23
y Outlook
25
Page 5
MLP – Company Presentation
MLP – a broad-based consulting house
The MLP Group
Page 6
MLP – Company Presentation
Nationwide consulting for private and
corporate clients
The MLP Group
MLP Branch offices
MLP Headquarters
TPC
Feri
Æ 170 Branch offices
throughout Germany
Æ 1,996 Consultants
Page 7
MLP – Company Presentation
International representations
– Feri:
• Vienna
• Milan
• Sankt Gallen
• Luxembourg
International offerings across
networks
Unique positioning in the market
Private client consulting
Insurance consulting
Independent Broker
• Works on behalf of the client
• Is awarded a consultancy mandate, similar to a lawyer
• Extensive risk and requirement analysis
• Sufficient number of products available on the market
Tied Agents
Multi-Agents
• Acting on behalf of one or several
product providers
• Working on behalf of the respective
product provider
• Risk and requirement analysis based
on situation
• Risk and requirement analysis based
on situation
• Limited product selection
• Limited product selection
Page 8
MLP – Company Presentation
Wealth management
Researched based independent
consulting
• Full banking license
• Serving affluent clients at MLP
• HNWI with private estates > 5 million Euros are
served by Feri
• Innovative multi-asset/multi-manager approach
• Product-independent market assessments
• Broad-based research as basis for investment
consulting
• MLP clients benefit from Feri's expertise
• Close cooperation between Feri and MLP in
direct mandates
MLP – Unique business model
Private client consulting
Academics and other
Corporate University
378
Discerning clients
Several Awards
8,250 Products
Target group focus
+
Quality of advice
Objectives
25
28
Independence
Advice
31
34
Planning
Planning
Insurance
Insurance coverage
coverage
Retirement
Retirement provision
provision
Health
Health
Consumption
Consumption
Page 9
+
MLP – Company Presentation
35
Solutions
Solutions
Partner
Solution
37
40
45
52
65
Old -age provision
Old-age
provision management
management
Non
Non-life
-life management
management
Health management
Loan and mortgage management
Wealth management
Cash management
Unique positioning in the market
Corporate clients
y
Independent consulting and concepts for corporate clients
y
Registered as a broker
y
Nationwide consulting services
y
Consulting covering all aspects of company pension
schemes and remuneration
y
Efficient establishment of innovative concepts and
solutions
y
Combination of company and private solutions
y
Comprehensive risk management for companies
y
Straightforward Company Pensions at MLP
y
More complex Company Pensions at TPC / Feri
y
TPC is member of the International Benefits Network
Page 10
MLP – Company Presentation
Institutional clients
Investment
Management
Feri Trust GmbH
• Strategic asset allocation
• Investment Management
• Risk Overlay
Consulting / Family
Office
Feri Institutional & Family
Office GmbH
• Financial consulting
• Asset structuring and
-controlling
• Asset Protection
Fund Administration
Feri Trust (Luxembourg)
S.A.
• Ideal set up for all strategies
• Structuring and floatation of
funds
• Complements MLP Group's
range of services
Alternative Investments
FERREAL AG
• Alternative investments
• Planned expansion to fulfil
capital investment legislation
requirements (KAGB)
Unique positioning in the market
Rating
Services
y Macroeconomic analysis & forecast
(economy, interest-rates, capital markets)
y Rating and analysis of mutual funds and
closed investments
y Rating and analysis of Real Estate
Investments (direct and indirect / Funds)
Independent Rating
Investment markets
Market players
Products
Country rating
Capital market rating
Investment companies
Asset managers
Investment funds
Certificates
Sector rating
• Germany
• International
Corporations
Sectors
Corporate assessment
Corporate rating
Property
Location rating
• Countries
• Cities
Property companies
Asset managers
Rating system
Property evaluation
Property rating
Market analysis
Initiators
Funds & investments
• Property
• Shipping
• Infrastructure
Market surveys
Macro & Financial
market data
Initiators
Intermediates
Investors
Investment products
• Institutional
• Retail
Capital
markets/
Funds
y Manager selection / product selection
y Credit Rating
Investments
Surveys/
Databases
Page 11
MLP – Company Presentation
Market Environment
Old-age provision
Statutory pension level decreases
[before tax]
%
55
Preferences for provision
[in %]
32
Own property
52,9 %
Building savings
contract
50
21
46,6 %
Property available for
rent
45
Life insurance
40
2000
2012
2016
2020
13
5
2024
Source: Report Federal Ministry of Labour and Welfare 2012
+
Source: Postbank survey old-age provision in Germany 2013/2014 / IfD polls
-
+ Increasing need for private provision – statutory
pension level decreases
– Uncertainty among consumers leads to hesitancy
regarding long-term investments
+ Wide scope of state subsidies/allowances and tax
breaks for citizens in Germany
– Low interest rates and negative reports about life
insurance contracts have led to greater hesitancy
– Short-term oriented investment preferences for
savings – real estate preference for provision
Page 12
MLP – Company Presentation
Market Environment
Healthcare
Future development of healthcare system
Insufficient level of care provided by the
statutory healthcare system
Increasing awareness of long-term care
13%
48
16
23%
4%
Good healthcare cover only through
private provision
53
28
14%
Good healthcare cover costs a lot of
money on top of the state health
insurance system premium
47
40
Large proportion no longer benefits from
medical advances
25
46
is already so
will become so
50
100
Very important
important
Private
long-term care
provision is:
Less important
Not at all important
Not sure
46%
0
Source: Continentale Krankenversicherung AG
+
Source: MLP Health Report, IfD polls
-
+ Due to demographic development private provision in
general is becoming more and more important
– Political discussion regarding private health insurance
causes uncertainty and hesitance among consumers
+ Greater focus in long-term care due to decreasing level of
statutory coverage and introduction of new state-subsidised
product in January 2013
– German consumers not yet familiar with long-term care
provision
Page 13
MLP – Company Presentation
Market Environment
Wealth Management
Managed Assets in Germany
In € billion
1200
Institutionals
1000
Mutual funds
+ 53%
800
+ 27%
600
In € billion
2008
2012
Institutional
641,7
981,6
53,0%
Mutual Funds
575,8
729,7
26,7%
400
200
0
2008
2009
2010
2011
2012
Source: German association of Investment and Asset Management (BVI), Data end of year
+
-
+ High investment requirements from institutional investors
– Risk aversion throughout the market
+ Institutional business shows steady growth
– Inflows from private clients particularly into money
market-related products such as money market funds
and fixed income funds
– Preference for short term investments
Page 14
MLP – Company Presentation
Agenda
y MLP at a glance
3
y Business model
6
y Key Financials
17
y MLP AG Share
23
y Outlook
25
Page 15
MLP – Company Presentation
Foundations for stable future development
FY 2012 – Successful transformation
Broadening of the business model
y
Expansion of wealth management
y
Development of occupational pensions business
y
Improvement of revenue quality through recurring revenues
Comprehensive efficiency management
y
Reduction of administration costs by a total of € 60 million
– without limitation of strategic further development
Improved Profitability
y
EBIT margin increased to 13% despite difficult markets
Page 16
MLP – Company Presentation
Significant rise in EBIT
FY 2012 – High seasonality in business development – Second half of the year is crucial
Contribution by quarter
EBIT
100%
[€ million]
74.1
80
60
56.2
64.29%
50.7*
Q4
~ 80%
47.0
42.2
50%
40
20
0
2008
2009
2010
* Adjusted for one-off exceptional costs
Page 17
MLP – Company Presentation
2011
2012
0%
14.96%
Q3
4.18%
Q2
16.58%
Q1
2012
Improved revenue mix
FY 2012 – Substantial increase in recurring revenues
FY 2005
FY 2012
(Revenue from commissions and fees: € 467.9 million)
(Revenue from commissions and fees: € 518.0 million)
4%
2% 1%
6%
Old-age provision
10%
Wealth management
3%
3% 1%
12%
Health insurance
Non-life insurance
Loans and mortgages
23%
Other commissions and fees
80%
55%
+ In 2012 the share of recurring revenues reached more than 50% – increased from around a third in 2005
+ Wealth management now plays an important role
+ Improved revenue mix supports stability in total revenue
Page 18
MLP – Company Presentation
9M 2013 influenced by more difficult market
conditions
9M 2013 revenues
Total Revenue 9M 2013
Factors to watch
[in € million]
355.3
y EBIT falls to € 12.3 million (9M 2012: € 26.4
million) due to decrease in revenue and changed
revenue mix
338.8
y More difficult market conditions in old-age
provision and in health insurance
300
340.2
325.2
308.0
319.6
200
100
20.6
15.1
0
9M 2012
Page 19
17.2
13.6
9M 2013
Revenue
Revenue from commissions and fees
Interest income
Other revenue
MLP – Company Presentation
y Very positive development in wealth management
continues
y Non-life and loans and mortgages show
remarkable increase
y Slight pick-up in business since September –
increased momentum expected in the upcoming
weeks
y Remaining weeks of the year of high importance
for full-year result
Increase in wealth management, loans and
mortgages and non-life insurance
9M 2013 revenue split
Revenue
[in € million]
Q3 2012
Q3 2013
Δ in %
9M 2012
9M 2013
Δ in %
Old-age provision
54.9
48.1
-12
152.3
131.6
-14
Wealth management
34.5
35.1
2
83.7
100.4
20
Health insurance
13.7
10.7
-22
45.5
36.2
-20
Non-life insurance
4.1
4.6
12
26.7
27.1
2
Loans and mortgages*
3.3
3.8
15
8.8
9.8
11
Other commissions and fees
0.8
1.2
15
2.6
2.9
12
Interest income
6.7
5.7
-15
20.6
17.2
-17
*excluding MLP Hyp
Page 20
MLP – Company Presentation
Agenda
y MLP at a glance
3
y Business model
6
y Key Financials
17
y MLP AG Share
23
y Outlook
25
Page 21
MLP – Company Presentation
MLP AG Share
Share details
Share details
Shares outstanding:
Free Float:
Average trading volume:
WKN:
ISIN:
Exchanges:
107,877,738
37.71 % (Definition Deutsche Börse)
46,200 (Xetra, shares per day in 2013)
656 990
DE0006569908
XETRA, Frankfurt, other regional exchanges
Shareholder Structure
Dr. h. c. Manfred Lautenschläger
Swiss Life Holding
HDI / Talanx
Barmenia
Allianz SE
Angelika Lautenschläger
Freefloat (Def. Deutsche Börse)
Harris Associates
FMR LLC
23.53%
9.90%
9.89%
6.67%
6.27%
6.03%
37.71%
9.70%
3.01%
HSBC
JP Morgan Cazanove
Equinet/ESN
Bankhaus Lampe
Main First
Independent Research
Nord LB
Neutral
Underweight
Accumulate
Hold
Underperform
Hold
Hold
Research Coverage
All figures as of September 10, 2013
Page 22
MLP – Company Presentation
Dr. h. c. Manfred
Lautenschläger
Freefloat
Swiss Life
Angelika
Lautenschläger
HDI / Talanx
Allianz SE
Barmenia
PT 5.00
PT 6.20
PT 5.30
PT 4.70
PT 4.60
PT 5.00
PT 4.70
Agenda
y MLP at a glance
3
y Business model
6
y Key Financials
17
y MLP AG Share
23
y Outlook
25
Page 23
MLP – Company Presentation
Administration costs reduced by € 60 million –
Solid basis for the future
Cost are under control
Administration costs
[€ million]
320
310
300
311.7
290
295.4
280
279.1
270
260
274.3
251.7
250
240
2008
2009
2010
* Personnel expenses, depreciation and amortisation, other operating expenses
** Adjusted for one-off exceptional costs
Page 24
MLP – Company Presentation
2011
2012
Targeted investments in future topics
Outlook
IT/
Organisation
• Credit Card Processor
• Migration of IT-Systems into the cloud
Services for
consultants
New Service Centre „MLP-Dialog“
• Supporting consultants (Arranging client appointments, updating client data…)
• Standardised existing business (car insurance, tariff changes…)
Æ Increasing productivity for consultants
Recruiting
New opportunities for joining MLP:
• Trainee
• Integrated degree program
• Internship
New Branches
Selected establishment of new branch offices in distinguished locations with intensive
HQ support:
• University cities – focused on acquisition
• Target Group: young graduates
New Marketing
campaign
Wealth Management
• Print Media Focus
Page 25
MLP – Company Presentation
Announced investments still on track
Outlook
Development of temporary expenditures
[in € million]
IT / Organisation
~3.4
Services for
consultants
~8.0
Recruiting
~4.6
New branches
New marketing
campaign
9M
Page 26
MLP – Company Presentation
Q4
2013
Expected growth in wealth management
Outlook 2013
2013
Old-age provision
–
Health Insurance
–
Wealth Management
+
Very positive: ++, positive: +, neutral: 0, negative: -, very negative: --
• Development of administration costs slightly better than expected at the
beginning of the year
• Comprehensive efficiency management of recent years and broadened revenue
base foundation for further solid earnings development
• EBIT target range still between € 65 and € 78 million in the financial years
2014 and 2015
Page 27
MLP – Company Presentation
Q4 significantly contributes to our full year
performance
Outlook
Contribution of the fourth quarter to the FY EBIT* (2009-2012)
[in € million]
70
60
• Operating EBIT in Q4
in recent years between
€ 30.0 and € 47.7 million
50
40
47.7
30
32.0
30.0
30.5
20
10
12.3
0
9M 2013
Q4 2012
Q4 2011
*operating EBIT
Page 28
MLP – Company Presentation
Q4 2010
Q4 2009
• Upcoming weeks are crucial to
the year-end result
Additional potential in the last quarter
Outlook
Wealth
Management
Utilisation of the extensive MLP client potential, also positive
expectations for the Feri business
Long-term
care
Clients are increasingly focussing on long-term care - acceleration due to
"Pflege Bahr" (supplementary long-term care insurance)
Occupational
provision
Strong market position of MLP - still huge catch-up requirement in
Germany
Disability
Occupational disability insurance not correlated with difficult market environment
Page 29
MLP – Company Presentation
Summary
• Very successful financial year 2012 demonstrated the importance of the early
implementation of the efficiency programme and the broadening of the
business model
• MLP is benefitting from the strengthening of the wealth management and
occupational pension businesses and will further increase the proportion of
recurrent revenues
• Business development in the first nine months 2013 affected by increasing
difficult market conditions in old-age provision and health insurance
• Pick-up since September and increasing momentum expected until the end of the
year
• Comprehensive efficiency management of recent years and broadened revenue
base foundation for further solid earnings development 2013
• EBIT target range still between € 65 to € 78 million in the financial years 2014
and 2015
Page 30
MLP – Company Presentation
Contact
MLP Investor Relations
Alte Heerstr. 40, 69168 Wiesloch
Germany
•
Jan Berg,
Head of Corporate Communications
Tel.: +49 (0) 6222 308 4595
•
Andreas Herzog,
Team Head Investor Relations
and Financial Communications
Tel.: +49 (0) 6222 308 2272
[email protected]
www.mlp-ag.com
Page 31
MLP – Company Presentation