preliminary results 2008 - mlp se · 2020. 8. 14. · page 2 mlp analyst conference, frankfurt -...

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Preliminary results 2008

Frankfurt - February 18, 2009

MLP Analyst Conference, Frankfurt - February 18, 2009

Agenda

• Highlights 2008Dr. Uwe Schroeder-Wildberg, CEO

• Preliminary results 2008Andreas Dittmar, Head of Finance

• Strategy, market developments, outlook and summaryDr. Uwe Schroeder-Wildberg, CEO

• Questions & Answers


Preliminary results 2008 - Highlights

Dr. Uwe Schroeder-Wildberg, CEO



Highlights

• Far-reaching financial crisis led to significant restraint on the part of clients

• MLP still achieved total revenues almost equalling therecord level of 2007

• No involvement in any risky capital market business –MLP has a very resilient balance sheet and excellent liquidity

• Great financial strength enables a large portion of the profitto be distributed – proposed dividend of 28 cents

Financial Year 2008


-50

-40

-30

-20

-10

0

10

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sources: BVI / Deutsches Aktieninstitut

Inflows – Retail funds 2008

[in € bn]

0

2

4

6

8

10

12

2001 2007 1. HY 2008 2. HY 2008

Mixed funds ony Equity and mixed funds Equity funds only

Holders of mutual funds in Germany

Financial crisis led to significant restraint on the part of investors

[in million]

9.87.9 7.7 6.6

2001 2007 H1 2008 H2 2008


Attractive shareholder participation

EUR 56.6 million

EUR 31.1 million

EUR 0.28

EUR 597.7 millionTotal revenues

EBIT

Net profit

Dividend per share

Overview



Andreas Dittmar, Head of Finance



Other revenues

Total revenues 2008

Revenues200

400

0

[in € million]

Revenues - Commissions and fees

597.7

200842.9

554.

8

514.0

40.8 Interest income

200741.6

629.8

588.

2554.1

34.1

FY 2008: Total revenues almost at previous year’s level

600

200634.1

573.753

9.6

513.3

26.3


Other revenues

Total revenues Q4 2008

Revenues50

0

[in € million]


Q4 200814.9

174.

9164.2

10.6 Interest income

Q4 200713.2

211.

1

201.6

9.5

Q4: Shortfall in total revenues due to capital market crisis

100

224.3 189.8

150

200

Q4 200612.4

193.

2

185.0

8.2

205.6


Clients are reluctant to invest long-term


[in € million]

Old-age pension provision

Health insurance

Non-life insurance

Wealth management

Loans and mortgages

Other commissions and fees

2008

346.4

45.9

23.2

82.2

12.4

4.0

Q4 2008

123.8

12.8

1.5

21.3

3.5

1.4

Q4 2007

156.0

11.7

2.8

23.7

5.7

1.7

359.3

56.3

22.0

94.9

17.6

3.9

2007in % in %

-20.7

+10.1

-47.7

-10.3

-38.8

-19.2

-3.6

-18.5

+5.3

-13.4

-29.6

+2.3


Wealth management accounts for 16% of revenues from commissions and fees

Revenues – Commissions and fees, 2008: € 514.0 million[in %]

0.8%2.4%

Old age pension provisionWealth managementHealth insuranceNon-life insuranceLoans and mortgagesOther commissions and fees

11,461

3,336

2,943

Old-age pension provision

Health insuranceNon-life insurance

Wealth management

Loans and mortgagesOther commissions and fees

67.4%

4.5%

8.9%

16.0%

2.4% 0.8%


EBIT

Adjusted EBIT 2008

[in € million]

~ 91

3.8

56.6

One-time expenses for regulatory changes

Continuing operations

One-time write-down on rented property

6.0 2.5

EBIT 2008 as reported

Adjusted EBIT 2008

Loss at TPC

Impact on earnings of declining revenues dueto capital market crisis

3.4

~ 19

Tax accrual

68.9

Capital market crisisOne-offs ~12.3 m


Income statement

Operating EBIT margin: 11.5%


[in € million]

Total revenues

EBIT

Finance cost

EBT

Taxes

Net profit

EPS in €(diluted)

2008597.7

56.6

-9.5

47.1

-16.0

31.1

0.30

2007629.8

113.9

-3.9

110.1

-32.6

77.5

0.77

Q4 2008189.8

17.1

-0.5

16.6

-4.7

11.9

0.11

Q4 2007224.3

56.6

-1.4

55.2

-17.2

38.0

0.38

• Operating EBIT marginFY 2008: 11.5%

• Finance costs burdenedby (one-time) high dividendto minority shareholders ofFeri

• Tax rate: 34%

• Net profit discontinuedoperations € -6.3m


Stable Assets under Management

New Business and Assets under Management

Old-age pension provision Assets under Management

2008

2

0

6.6

2007

6.8

6

[in € bn]

2007

5

10

0

11.4

2005

8.3

4

2006

10.8

2008

11.48

[in € bn]


MLP is financially strong

MLP Group – selected balance sheet items

Intangible assets

Financial investments

Cash and cash equivalents

Other receivables and other assets

Shareholders’ equity

Equity ratio

Other liabilities

184.7

52.4

37.3

162.1

339.7

24 %

278.5

162.4

179.9

38.1

147.1

429.1

28 %

236.4

31/12/2007 31/12/2008[in € million]

Total 1,424.2 1,534.4

• Liquid funds of € 210 m

• Equity ratio: 28%

• Payout ratio will increase


0

200,000

400,000

600,000

800,000

Client base continues to steadily increase


Total number of clients

703,000668,000635,000

31/12/0831/12/0731/12/0631/12/05

593,000

31/12/04

730,000

42,000 new clients gained in 2008


0

500

1,000

1,500

2,000

High quality sales force


Total number of consultants

31/12/04 31/12/05 31/12/06 31/12/07

2,5492,3582,376

31/12/08

2,4282,500 2,494


Preliminary results 2008 –Strategy and market developments




MLP is already implementing the major requirements

Major requirements:Stronger orientation towardscustomer requirements and greater transparency for customers

Adaptation of the regulatoryprovisions to everyday practice

Brokerage of investment funds only with banking license

More comprehensive qualification

Strengthening of fee-basedconsulting

MLP situation:• Client-oriented consulting as

the core of the business model

• High degree of transparencythrough comprehensivedocumentation and detailedreporting

• MLP already possesses aGerman banking license

• Training standards far exceedthe legal standards

Study by the Ministry of Consumer Protection concerning better quality in financial consulting


Targeted further development

Milestones of the past five years

• Strengthening ofindependence

• Development of occupational pension business

• Sale of owninsurers

• Majority holding in Feri Finance AG

• Banking licensefor investmentbrokerage

• Establishmentof MLP Hyp

• Accreditationof the Corporate University

• Full bankinglicense (Group)

• Acquisition of TPC

• Acquisition of ZSH

2008/0920072004 20062005

2008/0920072004 20062005


MLP – A broad-based Consulting House

Private clients Corporate clients RatingMLP Finanzdienstleistungen

Feri Family Trust

ZSH

MLP Finanzdienstleistungen (Business areas: occupational pensions and corporate clients)

TPC

Feri Institutional Advisors

Feri EuroRating Services

Research


TPC boasts first-rate reference clients -nationwideExtract

Services Industrial Public enterprises


Executive Board - MLP AGDr. U. Schroeder-Wildberg (Chairman),

G. Frieg, M. Suleiman, R. Schmid, A. Dittmar (Director)

Private clients

Executive CommitteeDr. U. Schroeder-Wildberg

Corporate clients Research/Investment

M. Suleiman

MLP

M.Stammler

Feri

Dr. H. Huhn

MLP/TPC

A. Thorn

Feri

Dr. H.W. RappFeri

Finance

A. Dittmar

MLP

Banking

E. WespMLP

Operations

R. Schmid

MLP

Products

G. FriegMLP

Introductionof a new Executive Committee


Preliminary results 2008 –Outlook and summary




Management Agenda 2009

Beratungsqualität

External growth through active participation in the industry consolidation

Consistent and full utilisation of revenue potential

Strict cost discipline – package of measures for reducing expenditure


MLP’s target group has the highest provision requirementsContinued high revenue potential in old-age pension provision

*Difference between 80% of last gross income and the replacement rate by the state pension scheme

25%

30%

35%

40%

45%

50%

1945

1948

1951

1954

1957

1960

1963

1966

1969

1972

1975

1978

1981

1984

Year of birth

University GraduatesPart-time staffSkilled workersStandard pensioner

Source: Allianz Dresdner Economic Research

Provision shortfall*


Targeted cost reduction of € 34 m

Fixed costs

• Cost savings of € 12 m in 2009and a further € 10 m in 2010

• Additionally shortfall of € 12 mof one-time expenses in 2009

260

270

280

290

300

310

320

2008 2009e 2010e

314

290

280

[in € million]

2010e2008 2009e


Optimally equipped for consolidation

Quality and IndependenceNumerous statutory changes

Independent providers are gaining market share

Size and Capital StrengthHigh costs due to regulatory requirements

“Critical mass” necessary

Technology and InfrastructureProcesses and organisation are gaining in significance

Legal standards necessitate extensive infrastructure

Trend MLP Strengths• MLP is subject to the highest qualitative

requirements (independent broker, banking license)

• MLP has long exceeded numerous legal standards

• Strong capital base (liquid funds: € 210 m)

• No risk positions on the balance sheet

• Largest financial consulting company that isregistered as an independent broker

• Excellent infrastructure (Sales support, training, product portfolio)

• Technology leader

Growth through acquisitions


Summary

• Total revenues almost reached the record level of 2007 despite anextremely difficult market environment

• MLP has developed itself to become a broad-based consulting housewith a strong corporate business component

• In 2009 MLP will continue to consistently avoid risk positions and willreduce costs

• MLP is optimally equipped for consolidation within the industry

• Outlook 2009: MLP is cautiously optimistic and aims to outperformthe market

MLP will come out of the global financial crisis in a stronger position


Preliminary results 2008 – Q & A


preliminary results 2008 - mlp se · 2020. 8. 14. · page 2 mlp analyst conference, frankfurt -...

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