MLP generates total revenues of EUR 231.4 million in the first half-year

• Robust development in core business under difficult framework conditions
• Earnings affected by the economic and financial crisis
• Great financial strength – EUR 188.3 million of liquid funds
• Cost reduction measures taking effect: Fixed costs in Q2 down by around EUR 11 million
• Assets under Management rise to EUR 11.7 billion

Wiesloch, 12th August 2009 - MLP, the independent financial services and wealth management consulting company, has demonstrated robust revenue development under the continuingly difficult market environment. In the first half-year of 2009, total revenues only fell to EUR 231.4 million (H1 2008: EUR 282.2 million), following on from the same period in the previous year in which the final increase in subsidised premiums for the Riester pensions scheme (“Riester step”) accounted for around EUR 40 million.

“In addition to numerous regulatory changes, our framework conditions are presently characterised, above all, by private and institutional clients deferring their investment decisions in view of the economic and financial crisis,” comments MLP AG Chief Executive Officer Dr. Uwe Schroeder-Wildberg. “We have provided extensive consultation services to our clients and have stood up well in comparison to the competition”.

Earnings before interest and taxes (EBIT) fell from EUR 35.8 million to EUR 5.9 million. This figure includes exceptional and one-off expenses for capital market-relevant consulting services amounting to EUR 3.4 million in consequence of Swiss Life’s stake in MLP. In addition, there was a one-off charge in the second quarter amounting to around EUR 1.1 million on account of restructuring measures at the subsidiaries Feri and TPC. Due to a tax back-payment, MLP recorded a loss from its continuing operations of EUR 0.1 million (EUR +17.4 million). Liquid funds amounting to EUR 188.3 million highlight the great financial strength of MLP.

Numerous clients are currently concentrating on liquidity-oriented investments such as call deposits or on increasing their level of risk protection. This is illustrated, for instance, in the non-life insurance business - following a rise between April and June, revenues for the half-year stood at EUR 18.7 million (H1 2008: EUR 18.8 million) thus almost equalling the level achieved in the previous year. The health insurance business also remained stable with revenues amounting to EUR 22.8 million (EUR 22.8 million). Disability insurance, which is accounted under old-age pension provision revenues, also played a significantly more dominant role.

However, clients in the areas closely connected to the capital market are hesitant, particularly with respect to medium and longer-term investments. Against this backdrop, revenues in wealth management fell by 20 percent to EUR 33.1 million (EUR 41.5 million). This reflects – in addition to subdued demand on the part of private and institutional clients at both the subsidiary Feri as well as at MLP – lower performance-linked remuneration and a greater aversion to risk of clients. Old-age pension provision stood at EUR 123.0 million compared to EUR 150.6 million in 2008. Revenues from commissions and fees across all the consulting areas amounted to EUR 203.5 million (EUR 241.2 million). Interest income fell by 11 percent from EUR 19.4 million to EUR 17.3 million due to lower interest rates.

Total revenues in the second quarter of 2009 totalled EUR 105.9 million and were thus 16 percent below the previous year’s figure (Q2 2008: EUR 126.4 million). The stable development compared to the market in the core business can also be seen in the financial services segment, in which total revenues declined by 12 percent to EUR 97.0 million (EUR 110.0 million). At Group level, EBIT amounted to EUR 2.4 million (EUR 10.7 million). In this respect, the cost reduction programme initiated in February 2009 is having a positive effect: After adjustment for the one-off restructuring expenses at the subsidiaries Feri and TPC amounting to EUR 1.1 million as well as for cost increase due to an acquisition, MLP reduced fixed costs for the period from April to June by 14 percent to EUR 65.8 million (EUR 76.9 million). “Our measures are taking effect and the cost reductions are well on schedule,” explains Andreas Dittmar, Head of Finance at MLP. “We will continue our strict cost management programme and achieve our savings objective.” MLP had announced it would reduce its fixed costs by the end of 2010 by a total of EUR 34 million, of which EUR 24 million are planned for 2009, followed by a further EUR 10 million next year.

In the first half-year annual premiums in private health insurance rose from EUR 21.3 million to EUR 23.8 million due a heightened level of interest following the introduction of the central health fund (“Gesundheitsfonds”). New business in old-age pension provision fell to a premium sum of EUR 1.9 billion (EUR 3.0 billion) - the same period in the previous year having been significantly influenced by the “Riester Step”. The occupational pension business area accounted for a larger portion of this figure, contributing 10 percent (full year 2008: 8 percent). MLP also achieved gains in Assets under Management that form an important foundation for future development in wealth management. They rose by 4 percent to EUR 11.7 billion (31.3.2009: EUR 11.2 billion).

Between April and June MLP gained a total of 8,500 clients, taking the total number of clients to 777,000. The number of consultants stood at 2,405 (31.3.2009: 2,435).

All figures have been adjusted to take account of the foreign operations in Austria and the Netherlands that have been offered for sale. In the second quarter of 2009, the loss after taxes in the discontinued operations amounted to EUR 4.6 million (Q2 2008: EUR -1.2 million); at a Group level this results in a deficit of EUR 5.0 million (EUR +7.6 million). The figure for the discontinued operations includes sale and closure costs of EUR 1.3 million as well as an operative loss of EUR 1.7 million. The figure is further burdened by tax expenses for the previously discontinued foreign activity in Switzerland amounting to EUR 1.5 million and resulting from the non-recognition of loss carryforwards from the financial years 2002 to 2006.

As already communicated on Monday, MLP has in principle reached agreement with Aragon AG concerning the sale of its business unit in Austria. The contract will probably be concluded this autumn. The business in the Netherlands, where MLP only operated one branch, will be closed down on 30th September 2009.

During the second quarter MLP fared well in several tests. In an old-age pension consulting survey conducted by the magazine “Wirtschaftswoche” and the management consultancy firm “S.W.I. Finance”, MLP achieved the highest overall score of all the 35 providers. In the “Best Mortgage Lender” survey, carried out on behalf of the magazine “Euro”, MLP was placed in third position. Furthermore, the MLP subsidiary Feri Family Trust once again won an award. Within the scope of the search for the best foundation manager, Feri was awarded an “unreservedly commendable“ rating by the economic information service “Fuchsbriefe”.

Overall, the general framework conditions remain very difficult due to the economic and financial crisis. Within this environment MLP seeks to continue to develop better than the market.

During the coming months there will be great consulting and information requirements on the part of clients, above all due to federal economic stimulus packages (“Bürgerentlastungsgesetz”), which, from January 2010, will significantly increase the liquidity of individuals with private or state-scheme health insurance. “We envisage a gradual improvement in business development during the course of the year. As it is usual with our business model, we expect to see a significant pick-up in our business development, particularly in the fourth quarter, coupled with a further reduction in costs,” comments Andreas Dittmar.

Continuing operations (in EUR million)	Q2/ 2009	Q2/ 2008	Change in %	6 months 2009	6 months 2008	Change in %
Revenues	100.0	111.9	-11	220.8	260.6	-15
Revenues from comissions and fees	91.9	102.5	-10	203.5	241.2	-16
Interest income	8.1	9.4	-14	17.3	19.4	-11
Other revenues	5.9	14.4	-59	10.6	21.6	-51
Total revenues	105.9	126.4	-16	231.4	282.2	-18
Profit before interest and taxes (EBIT)	2.4	10.7	-78	5.9	35.8	-84
Profit before tax (EBT)	1.8	9.9	-82	3.8	26.9	-86
Net profit	-0.4	8.8	>-100	-0.1	17.4	>-100
Earnings per share (diluted) in EUR	0.00	0.09	-100	0.00	0.18	-100
Clients				777,000	728,000*	7
Consultants				2,405	2,413*	-

*) 31/12/2008