MLP concludes the financial year with a significant rise in earnings in the fourth quarter

• Q4: EBIT increases by 74 percent to EUR 30.5 million
  (Previous year: EUR 17.5 million)
• Total revenues in Q4 amount to EUR 186.8 million, almost equal to the level of the previous year
• Full year: Cost reduction objectives significantly exceeded – Group net profit totals EUR 24.2 million, similar to the level of the previous year (2008: EUR 24.6 million)
• Assets under management climb to EUR 12.8 billion – a new record high
• Outlook: Increase in EBIT margin to 15 percent by the end of 2012 (2009: 7.9 percent)

Wiesloch/Frankfurt, 24th February 2010 - MLP, the independent financial services and wealth management consulting company, achieved a significant improvement in performance at the end of the financial year. In the fourth quarter, earnings before interest and taxes (EBIT) rose by 74 percent to EUR 30.5 million (Q4 2008: EUR 17.5 million). Net profit from continuing operations increased by 89 percent to EUR 23.0 million (EUR 12.2 million). Total revenues stood at EUR 186.8 million, thus almost equalling the figure achieved in the corresponding period of the previous year (EUR 189.1 million); compared to the third quarter this represents an increase of 64 percent (Q3 2009: EUR 113.9 million).

“We saw a considerable pick-up and performed well in the fourth quarter,” comments MLP Chief Executive Officer Dr. Uwe Schroeder-Wildberg. “As it was also the case in 2008, the final quarter proved to be less dynamic than in previous years due to the far-reaching effects of the economic and financial crisis.”

Despite the very difficult prevailing market conditions, total revenues in 2009 fell by just 11 percent to EUR 532.1 million (2008: EUR 595.2 million). The breakdown of the revenues from commissions and fees illustrates the considerable reluctance on the part of many clients regarding long-term contracts and capital market-associated investments. In this respect, revenues from old-age pension provision fell by ten percent to EUR 311.1 million (EUR 344.8 million). In wealth management, revenues declined by 13 percent to EUR 71.6 million (EUR 82.2 million). On the other hand, many clients preferred to focus on increasing their level of risk protection, leading to a rise in revenues from non-life insurance of 15 percent to EUR 26.5 million (EUR 23.1 million). In the health insurance business, revenues increased to EUR 46.5 million (EUR 45.9 million).

In the financial year 2009, EBIT amounted to EUR 42.2 million (EUR 56.2 million). This figure includes exceptional and one-off expenses amounting to EUR 3.0 million that were incurred in the first half-year for capital market-relevant consulting services in consequence of Swiss Life’s stake in MLP. In addition, there were also one-off restructuring-related costs of around EUR 2.0 million. Net profit from continuing operations totalled EUR 27.2 million (EUR 30.7 million). In the discontinued operations, the loss amounted to EUR 3.0 million (EUR -6.1 million). In addition to the disposal and restructuring costs as well as the operating loss concerning former foreign activities, among other things this figure includes sale proceeds of around EUR 6 million for the Austrian operation that MLP successfully sold to Aragon AG. Overall, Group net profit amounted to EUR 24.2 million and therefore remained around the level of the previous year (EUR 24.6 million).

The benefits of the efficiency programme initiated in February 2009 are reflected in the resilient earnings development. After adjustments for special effects and acquisition-related costs, MLP reduced its fixed costs in 2009 by a total of EUR 28.7 million – thus surpassing the announced cost reduction target of EUR 24 million by EUR 4.7 million.

MLP continues to boast excellent balance sheet strength with respect to key figures: On 31st December the equity capital stood at 28 percent and liquid funds amounted to EUR 209 million.

“Throughout 2009 we operated under considerably tougher market conditions – both in the private client as well as in the corporate client sector,” comments Uwe Schroeder-Wildberg. “However, we utilised the available opportunities whilst also reaping the benefits of our strict cost management programme.”

Thanks to modest inflows of funds and very good management performance at MLP’s subsidiary Feri, assets under management at 31st December rose to EUR 12.8 billion – the highest figure so far achieved in the history of MLP (31.12.2008: EUR 11.4 billion). Following a successful fourth quarter, MLP recorded a premium sum in old-age pension provision of EUR 5.1 billion in 2009- compared to the previous year’s achievement of EUR 6.6 billion which was, however, significantly influenced by the so-called “Riester” step. The occupational pension area accounted for a larger proportion of new business, rising to 10 percent (2008: 8 percent). The cross-selling rate also further increased - at 7.5 contracts per client (7.3) MLP manages and services its clients more comprehensively and holistically than any other provider in the market.

In the fourth quarter MLP gained around 10,500 new clients – making this period the strongest quarter of the financial year. In total, MLP was able to welcome around 34,500 new clients in 2009. The number of consultants at 31.12.2009 rose to 2,383 (30.9.2009: 2,360).

In view of the economic and financial crisis, the framework conditions in the financial year 2010 – particularly in the first half year – will remain difficult. Although there are signs of a tentative pick-up in the private client and corporate client business areas, the market environment remains generally tense and clients continue to act cautiously. Against this background MLP will continue to exercise the cost reduction plan introduced last year. The goal remains to reduce fixed costs in 2010 by a further EUR 10 million.

Particularly from 2011 MLP anticipates a return to improved framework conditions and has set itself the medium-term objective of increasing the 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). “For many years now MLP stands for not only providing an excellent standard of consulting services but also on generating a high level of profitability,” comments Andreas Dittmar, Head of Finance. “When the economic and financial crisis subsides, we intend to return to our accustomed strength in profitability.”

LP will be publishing the Group Annual Report on 25th March 2010.

Continuing operations (in EUR million)	Q4/2009	Q4/2008	Change in %	12 months 2009	12 months 2008	Change in %
Revenues	173.5	174.2	0	503.8	552.3	-9
Revenues from commissions and fees	166.9	163.6	2	472.4	511.5	-8
Interest income	6.6	10.6	-38	31.4	40.8	-23
Other revenues	13.3	14.9	-11	28.4	42.9	-34
Total revenues	186,8	189.1	-1	532.1	595.2	-11
Profit before interest and taxes (EBIT)	30.5	17.5	74	42.2	56.2	-25
Profit before tax (EBT)	29.0	17.0	71	39.7	46.6	-15
Net profit	23.0	12.2	89	27.2	30.7	-11
Earnings per share (diluted) in EUR	0.21	0.12	75	0.25	0.30	-17
Clients				785,500	728,000*	8
Consultants				2,383	2,413*	-1

*) 31.12.2008