MLP begins the year with a significant rise in earnings

• Q1: EBIT increases by 26 percent to EUR 4.0 million
• Slight fall in total revenues to EUR 121.2 million
• Positive signs in private and corporate client business
• Assets under Management climb to EUR 17.7 billion
• Further pick-up in business expected

Wiesloch, 12th May 2010 - MLP, the independent financial services and wealth management consulting company, has begun the financial year 2010 with a significant rise in earnings – despite having to operate in a market environment still beset by the effects of the economic and financial crisis. In the first quarter, earnings before interest and tax (EBIT) rose by 26 percent to EUR 4.0 million (Q1 2009: EUR 3.2 million). Total revenues – significantly affected by lower interest income – fell slightly to EUR 121.2 million (EUR 125.5 million).

“Although the market environment remains generally tense, we are nevertheless seeing positive signs in our private client and corporate client business areas and have laid a good foundation in the first quarter for the coming months,” comments MLP Chief Executive Officer Dr. Uwe Schroeder-Wildberg.

All the early indicators for future revenue development moved in a positive direction in the period from January to March. Accordingly, MLP welcomed 8,000 new clients, 1,400 more than in the same period last year (6,600). Assets under Management, which form the foundation for future revenue in wealth management, climbed from EUR 17.0 billion (31.12.2009) to EUR 17.7 billion. New business in old-age pension provision also rose compared to the same period last year, increasing from EUR 0.9 billion to EUR 1.0 billion. Occupational pension scheme business accounted for 15 percent of this new business and thus contributed to a higher degree than ever before. In private health insurance, annual premiums rose to EUR 15.9 million (EUR 13.2 million).

The positive development in new business is not yet fully reflected in the revenues from commissions and fees. Here, revenues in old-age pension provision amounted to EUR 58.9 million and thus remained around 6 percent below the previous year (EUR 62.9 million). In the private health insurance business, revenues fell to EUR 12.9 million (EUR 13.7 million). However, MLP achieved growth in the wealth management business which rose by
7 percent to EUR 18.3 million (EUR 17.2 million). Continued high demand for greater risk provision helped to increase revenue from non-life insurance by 8 percent to EUR 16.4 million (EUR 15.2 million). Combining all the consulting areas together, revenues from commissions and fees totalled EUR 109.1 million – almost equalling the previous year’s figure of EUR 111.6 million. However, interest income was clearly regressive, falling by 33 percent to EUR 6.2 million (EUR 9.2 million) due to the prevailing low interest rates. Total revenues thus amounted to EUR 121.2 million (EUR 125.5 million).

EBIT was burdened by an exceptional expense amounting to EUR 2.0 million that was incurred due to premature hedging costs within the framework of the participation programme for MLP consultants and employees. Nevertheless, this figure still rose by 26 percent to EUR 4.0 million (EUR 3.2 million). The annual dividend distribution to the minority shareholders of the subsidiary Feri Finance AG reduced the financial result in the first quarter, as planned, by EUR 0.7 million. This resulted in net profit from continuing operations of EUR 2.0 million (EUR 0.1 million). The net profit of the MLP Group rose significantly to EUR 1.7 million (EUR –1.4 million). Liquid funds stood at around EUR 205 million and therefore remain at a high level (31.12.2009: EUR 210 million).

Pleasing progress was made through the acquisition of 8,000 new clients in the first quarter although the total number of private clients fell to 764,500 (31.12.2009: 785,500). This was due to data matching with product partners and new processes, through which MLP is further improving the interfaces to product partners and thereby further enhancing the quality of costumer data. The number of consultants remained constant at 2,384
(31.12.2009: 2,383).

In the first quarter of 2010, MLP registered its Financial Planner vocational training course at the Corporate University for accreditation by the German Financial Planning Standards Board. Through this step MLP will enable its consultants to prepare themselves for the Certified Financial Planner (CFP) certification. The CFP is the highest internationally recognised training standard for financial consultants. The first training class starts in July.

As already communicated in February, the framework conditions will remain challenging for MLP, particularly during the first half-year of 2010. “However we expect the environment to stabilise further and that our business will steadily pick up,” comments Andreas Dittmar, Head of Finance at MLP. Simultaneously, MLP still intends to reduce its fixed costs in the financial year 2010 by a total of EUR 10 million.

The medium-term outlook also remains unchanged: MLP maintains its objective of increasing EBIT margin to 15 percent by the end of 2012 – representing almost a doubling of this figure compared to the financial year 2009 (7.9 percent).

Continuing operations (in EUR million)	Q1/2010	Q1/2009	Change in %
Revenues	115.3	120.8	-5
Revenues from commissions and fees	109.1	111.6	-2
Interest income	6.2	9.2	-33
Other revenues	5.9	4.7	26
Total revenues	121.2	125.5	-3
Earnings before interest and tax (EBIT)	4.0	3.2	26
Earnings before tax (EBT)	3.5	1.7	>100
Net profit	2.0	0.1	>100
Earnings per share (diluted) in EUR	0.02	0.00	>100
Clients	764,500	785,500*	-3
Consultants	2,384	2,383*	-

*) 31/12/2009