MLP

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FY 2021: sales revenue and earnings both significantly increased – MLP presents its 2025 growth course

  • FY 2021: total revenue is seeing growth on a broad basis and for the eighth year in succession, setting a new all-time high of EUR 934.5 million (up 22 percent)
  • Despite challenging framework conditions and ongoing investments, earnings before interest and taxes (EBIT) significantly above the previous year's level at EUR 96.8 million (2020: EUR 59.4 million) – with MLP benefiting in particular from unexpectedly strong rise in performance-based compensation in the wealth management business
  • Executive Board proposes dividend of 30 cents per share (2020: 23 cents)
  • 2022 forecast: despite increased risks in the markets, MLP is anticipating an EBIT of EUR 75 to 85 million – further growth in new business and an increase in recurring revenue in various consulting fields are set to largely compensate for the anticipated decline in performance-based compensation
  • New mid-term planning: growth course takes MLP to the next level in terms of earnings; EBIT of EUR 100 to 110 million with revenue in excess of EUR 1.1 billion planned by the end of 2025 – success factors already established for this: further increase in assets under management, sustainable growth across all consulting fields, ongoing expansion of the real estate business

Wiesloch, March 10, 2022 – The MLP Group recorded strong increases across all key indicators in the financial year 2021 and enjoyed growth at all Group companies. Total revenue rose on a broad basis and for the eighth year in succession, setting a new all-time high of EUR 934.5 million. The year-on-year gains were particularly pronounced in real estate brokerage (up 59 percent) and wealth management (up 36 percent). MLP is also back on its growth track in the old-age provision field of consulting (up 13 percent). Despite operating in challenging market conditions and ongoing investments, MLP was able to significantly increase earnings before interest and taxes (EBIT) to EUR 96.8 million (2020: EUR 59.4 million). The Group was in particular able to benefit from unexpectedly strong increases in performance-based compensation from wealth management. Based on this business performance, the Executive Board once again proposes increasing the dividend to 30 cents per share (2020: 23 cents, 2019: 21 cents).

"Our strategic alignment is paying off. We have worked hard as a Group to attain a unique position," comments Dr. Uwe Schroeder-Wildberg, Chief Executive Officer at MLP SE. "The 'new MLP' is continuing to gain in shape and strength, combining resilience with growth potential. In this further developed structure, we are catering to the increasing requirements of both our private and corporate clients with a modern service offering. The synergies of our various Group companies are increasingly taking effect here."

FY 2021: Total revenue rose by 22 percent to EUR 934.5 million

Total revenue rose by 22 percent in 2021, setting a new all-time high of EUR 934.5 million (2020: EUR 767.3 million). This can be attributed to a rise in commission income (revenue from commission and fees) of 22 percent to EUR 894.6 million (EUR 730.4 million), while interest income declined by 16 percent to EUR 12.7 million (EUR 15.2 million) due to market conditions.

In the last financial year, MLP was able to generate growth across all fields of consulting. After twelve consecutive years of growth, wealth management is again the largest consulting field on an annual basis. Alongside excellent operational development among both private and institutional clients, the unexpectedly high increase in performance-based compensation also made a key contribution to this. Performance-based compensation is accrued for the positive performance of investment concepts in wealth management at the subsidiary FERI. Assets under management in the Group rose to a new record level of EUR 56.6 billion as of December 31, 2021 (December 31, 2020: EUR 42.7 billion).

MLP has been expanding its real estate brokerage activities since 2014. For the fourth year in succession, this field delivered the greatest percentage growth, with revenue up 59 percent to EUR 62.8 million. Loans and mortgages also recorded a significant increase in revenue of 15 percent. Old-age provision revenue rose by 13 percent over the same period in the previous year to EUR 241.7 million (2020: EUR 214.6 million). A strong closing quarter, with an increase of 15 percent over the previous year's figure, also made a key contribution to this. The increase in the financial year came from the fields of private and occupational pension provision.

EBIT increases significantly to EUR 96.8 million

At EUR 96.8 million, MLP was able to significantly surpass its EBIT from the previous year (2020: EUR 59.4 million). Not only was an increase of this magnitude unexpected, it was also achieved despite operating in challenging framework conditions and ongoing investments. Net profit for the period rose from EUR 43.2 million to EUR 62.8 million.

Shareholders' equity increased to EUR 496.2 million as of December 31, 2021 (December 31, 2020: EUR 454.0 million). The core capital ratio was 17.9 percent. The net liquidity of the MLP Group was EUR 209 million at the end of the year, which represents a very solid basis.

Dividend: 30 cents per share proposed

The Executive Board proposes once again increasing the dividend per share to 30 cents (2020: 23 cents, 2019: 21 cents). At 52 percent of Group net profit, the payout ratio is within the announced corridor.

Q4: Revenue and EBIT significantly above the previous year

Total revenue enjoyed highly dynamic development in the closing quarter and increased by 25 percent to EUR 302.3 million (Q4 2020: EUR 242.0 million). EBIT also recorded a significant increase of 52 percent to EUR 49.5 million (EUR 32.6 million). The net profit for the period was EUR 31.6 million, following EUR 24.9 million in the previous year.

Development of client and consultant numbers

As of December 31, 2021, the MLP Group provided its services to 562,300 family clients (September 30, 2021: 559,500). At 21,100, the gross number of newly acquired family clients was well above the previous year's figure (18,400). The number of corporate and institutional clients also increased to 24,800 as of December 31, 2021 (September 30, 2021: 24,600). The number of consultants in the MLP Group as of December 31, 2021 was 2,083 (September 30, 2021: 2,051; December 31, 2020: 2,086). Since the young segment was established back in 2017, the total number of consultants working for MLP has risen from 1,909 to 2,083.

Forecast 2022

Despite increased risks in the markets, MLP is still anticipating EBIT of EUR 75 to 85 million for 2022. Further growth in new business and an increase in recurring revenue in various consulting fields are also set to largely compensate for the anticipated decline in performance-based compensation. Alongside the ever-increasing earnings contribution from the young segment, MLP is also anticipating a contribution in the mid-single-digit million range from the new Industrial Broker segment from this year onwards. At the same time, the massive investments of the last few years are already paying off greatly, in particular those targeting the IT infrastructures.

Planning for 2025

Based on the forecast for 2022, MLP is planning an increase in EBIT to EUR 100 to 110 million by the end of 2025, as well as sales revenue of more than EUR 1.1 billion in the same year. This planning essentially rests on three core strategic success factors: a further increase in assets under management in the Group, sustainable growth across all consulting fields and continued expansion of our real estate business.

In terms of the further increase in assets under management in the Group, MLP is planning to reach a level of EUR 62 to 68 billion for the year 2025. The aim here is for both FERI and MLP Banking AG to continue the successful development they have recorded in the last few years.

In terms of sustainable growth, MLP is in particular also anticipating an increase in the brokerage of old-age provision products. This is based on ongoing investments in the acquisition and qualification of young consultants. At the same time, there is further potential among seasoned consultants. Indeed, these are seeking to work with their clients, many of whom have been on board for years, to broaden and thus further diversify their old-age provision portfolios. MLP also expects the recovery in occupational pension provision to continue following the coronavirus crisis, especially since the need for consultancy services and corresponding solutions in this field will remain high among both employers and employees. In addition, higher non-life insurance portfolio volumes are to be another contributor to sustainable growth at MLP.

With regard to the ongoing expansion of the real estate business, MLP is anticipating a brokered volume of EUR 600 to 640 million in 2025. The aim is for both real estate brokerage and the project business to contribute to this – above all in the fast-growing field of senior citizen housing and nursing care.

Although not yet taken into account in the planning for 2025, acquisitions are also set to help in this regard, above all in the Industrial Broker segment. In addition, planned growth to the new level of earnings is supported by a systematic and ongoing cost management.

"Over the last few years, we have consistently aligned the MLP Group to deliver further and, above all, structural growth. Placed on a secure and solid footing, we are now continuing purposefully along our successful path. This is precisely what our planning for 2025 expresses. The MLP Group will thereby reach the next level in terms of both sales revenue and earnings," comments Reinhard Loose, Chief Financial Officer at MLP SE.

More details on the forecast for 2022, as well as the planning for 2025, will be provided during today's annual press and analyst conference.

The annual press conference takes place online today at 10 am, while the analysts' conference is at 2 pm online. All information is available under the following link: https://mlp-se.com/corporate-calendar/annual-press-conference-2022/

An overview of key figures

MLP Group (in EUR million) Q4/
2021
Q4/
2020
Change
in %
12 months
2021
12 months
2020
Change
in %
Revenue 288.9 233.6 24 907.3 745.5 22
Commission income 285.8 230.1 24 894.6 730.4 22
Interest income 3.1 3.5 -11 12.7 15.2 -16
Other revenue 13.4 8.4 60 27.2 21.8 25
Total revenue 302.3 242.0 25 934.5 767.3 22
Earnings before interest and taxes (EBIT) 49.5 32.6 52 96.8 59.4 63
Earnings before taxes (EBT) 48.6 31.4 55 93.3 56.3 66
Net profit 31.6 24.9 27 62.8 43.2 45
Earnings per share (diluted/ basic) in EUR 0.29 0.23 26 0.57 0.40 43
Family clients -- -- -- 562,300 559,500*
Corporate, institutional clients -- -- -- 24,800 24,600*
Client consultants -- -- -- 2,083 2,051*

*) 30th September 2021