MLP anticipates significant increase in free own funds through altered group structure

Wiesloch, 21st February 2017, 13:29 CET - The Executive Board of MLP AG today decided on a change in the group structure. Through a legal corporate separation, the regulated banking and financial services business will be concentrated in one company and other brokerage and consulting services in the other. Furthermore, the supervisory scope of consolidation will be narrowed down.

The objective behind bundling banking activities and changing the composition of the scope of consolidation is to significantly increase free own funds. On the basis of the current capital adequacy requirements, MLP expects the free own funds to increase gradually by probably around EUR 75 million by the end of 2021. MLP will thereby expand its scope for action above all for acquisitions and investments, but also in terms of the distribution of dividends.

MLP expects that these measures will generate one-off exceptional costs of EUR 9 million in 2017. Taking into account these one-off exceptional costs, MLP is anticipating IFRS earnings before interest and taxes (EBIT) of at least EUR 36 million for 2017, which corresponds to an increase of 17 percent over 2015 (EUR 30.7 million). The Executive Board intends to base its dividend proposal for the financial year 2017 on the operating net profit (net profit before one-off exceptional costs) and will maintain a distribution rate of 50 to 70 percent.

It is anticipated that the measures will be implemented in spring 2018. The implementation is subject to approval by the Supervisory Board and the final coordination with the Federal Financial Supervisory Authority (BaFin).

The used key figures partly represent alternative performance indicators. A detailed description of these can be found at: https://mlp-ag.com/investors/mlp-share/key-figures/