MLP maintains positive trend with growth in revenues and earnings

• Q3: Total revenues increase to EUR 116.0 million, EBIT rises to EUR 8.7 million
• 9M: Significant jump in earnings – EBIT climbs to EUR 17.0 million (45 percent increase), net profit almost triples
• Assets under Management continue to grow, with EUR 19.3 billion again reaching a record high
• Outlook: Further pick-up in business anticipated for the year-end

Wiesloch, 11th November 2010 – In the third quarter MLP, the independent financial services and wealth management consulting company, further expanded its growth in earnings and again generated growth in revenues. In this respect, revenues rose across almost all the consulting areas, whilst earnings continued to benefit from the on-going and successful cost management programme. MLP also achieved further growth in Assets under Management - which climbed to a new record high - as well as generating growing momentum in new client acquisition.

“We maintained the positive trend, building on our performance in the previous quarter, in which we achieved our first revenue growth since the outbreak of the financial and economic crisis,” comments MLP Chief Executive Officer, Dr. Uwe Schroeder-Wildberg. “The successful third quarter creates a good foundation for the final quarter of the year which is traditionally a very important one for MLP.”

In the period from July to September total revenues rose from EUR 113.9 million to EUR 116.0 million, representing an increase of 4 percent over the second quarter (Q2 2010: EUR 111.6 million). Earnings before interest and tax (EBIT) grew by 38 percent to EUR 8.7 million (Q3 2009: EUR 6.3 million). Net profit increased significantly, rising by
48 percent to EUR 6.8 million (EUR 4.6 million).

In the third quarter, revenues from commissions and fees from all consulting areas amounted to EUR 104.6 million, representing an increase of 3 percent compared to the same period in the previous year (EUR 102.0 million). The highest growth rate was achieved in health insurance, where revenues rose by 23 percent from EUR 10.4 million to EUR 12.8 million. In wealth management, business development reflected the gradually-returning confidence of investors with respect to capital market-related products - an aspect which helped MLP to achieve a 7 percent rise in revenues to EUR 20.0 million (EUR 18.7 million). The continuingly high demand for greater risk provision boosted revenues in non-life insurance which rose by 6 percent to EUR 3.7 million (EUR 3.5 million). The development in old-age pension provision business remained stable and amounted to EUR 64.1 million (EUR 65.1 million). The improving momentum is reflected in the comparison with the second quarter, during which revenues from old-age provision products only amounted to EUR 59.7 million. Due to the prevailing lower interest rates, interest income fell to EUR 6.4 million (Q3 2009: EUR 7.4 million).

On a nine-month basis, total revenues were also slightly above the previous year, amounting to EUR 348.8 million (9M 2009: EUR 345.3 million). EBIT grew by 45 percent to EUR 17.0 million (EUR 11.7 million). Net profit from the continuing operations almost tripled, climbing to EUR 11.9 million (EUR 4.1 million); group net profit also rose significantly to EUR 12.5 million (EUR – 2.3 million). The rise in earnings also reflects the success of the on-going efficiency programme: in the period from January to September MLP reduced its fixed costs by some EUR 7 million – thereby already achieving a large portion of the total planned savings target of EUR 10 million for 2010. The balance sheet strength of MLP is reflected in the equity ratio of 28 percent as well as its liquid funds of around EUR 197 million at 30th September 2010 (30th June 2010: EUR 192 million).

Thanks to the positive development in new business with private clients and institutional investors as well as to the current up-trend in the capital markets, Assets under Management continued to grow, reaching a new record high of EUR 19.3 billion (30th June 2010: EUR 18.7 billion). In old-age pension provision, the premium sum remained stable in the first nine months, amounting to EUR 3.0 billion (9M 2009: EUR 3.0 billion). Occupational pension business accounted for around 11 percent of this figure (Full year 2009: 10 percent). In private health insurance, annual premiums rose to EUR 38.2 million (EUR 31.3 million).

In the first three quarters of the year MLP welcomed a total of 24,500 new private clients (9M 2009: 24,500). In this respect, the third quarter proved to be the strongest quarter of the year so far - resulting in 8,500 new clients. The total number of clients thus stands at 771,000 (30th June 2010: 767,000). At 30th September, the number of consultants amounted to 2,317 (30th June 2010: 2,359).

Following adoption by the federal cabinet of the draft legislation concerning investor protection (“Anlegerschutzgesetz”) in September, further regulation of the industry is taking shape. Whereas institutes with a banking licence - such as MLP - are subject to supervision by the Federal Financial Supervisory Authority (BaFin), it is planned that brokers of closed-end funds will, in future, be supervised by the trade licensing offices.
“That would be a disservice to investor protection, as the trade licensing offices adopt a significantly laxer approach to monitoring and supervision as well as having fewer possibilities for applying sanctions,” comments Uwe Schroeder-Wildberg. According to announcements, the initiation of further new regulatory measures can be expected during the coming months. “Many market participants will find it difficult to keep pace with the stricter
requirements.”

Traditionally, the fourth quarter – and particularly the final weeks of the year – have a significant influence on the full-year result of MLP. “Despite the positive development in the past quarters and the more favourable economic environment, the German private and corporate client market nevertheless remains challenging,” explains Andreas Dittmar, Head of Finance at MLP. “However, the business in October further improved compared with the third quarter as a whole, and we expect to see a further pick-up in business during the coming weeks.” MLP’s medium-term goal remains to increase EBIT margin to 15 percent by the end of 2012 (2009: 7.9 percent).

Continuing operations (in EUR million)	Q3/ 2010	Q3/ 2009	Change in %	9 months 2010	9 months 2009	Change in %
Revenues	111.0	109.4	1	332.3	330.2	1
Revenues from commissions and fees	104.6	102.0	3	313.4	305.5	3
Interest income	6.4	7.4	-14	18.8	24.8	-24
Other revenue	5.0	4.5	11	16.6	15.1	10
Total revenues	116.0	113.9	2	348.8	345.3	1
Earnings before interest and taxes (EBIT)	8.7	6.3	38	17.0	11.7	45
Earnings before tax (EBT)	9.4	7.3	29	17.0	10.7	59
Net profit	6.8	4.6	48	11.9	4.1	>100
Earnings per share (diluted) in EUR	0.06	0.04	50	0.11	0.04	>100
Clients				771,000*	767,000**	-
Consultants				2,317	2,359**	-2

*) Adjustments in Q1 2010
**) 30.6.2010