Half Year 2026 MLP SE Earnings Call

August 13, 2026

Operator: Ladies and gentlemen, welcome to the MLP SE conference call regarding the publication of the results for Q2 and the H1 2026. The conference will be recorded. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation. Let me now turn the floor over to your host, Pascal Löcher.

Speaker #3: Ladies and gentlemen, welcome to the MLP SE conference call regarding the publication of the results for the second quarter and the first half of the year 2026.

Speaker #3: The conference will be recorded. At this time, all participants have been placed in listen-only mode. The floor will be open for questions following the presentation.

Speaker #3: Let me now turn the floor over to your host, Pascal Löcher.

Speaker #4: Thank you very much, and welcome to MLP's conference call to our results for the second quarter and the first half year of 2026. With me today is our CFO, Reinhard Loose.

Pascal Löcher: Thank you very much, and welcome to MLP's conference call to our results for Q2 and the H1 2026. With me today is our CFO, Reinhard Loose. He will guide you through the presentation. Of course, we are happy to take your questions after the presentation. Please go ahead, Reinhard.

Speaker #4: He will guide you through the presentation. And, of course, we are happy to take your questions after the presentation. So, please go ahead, Reinhard.

Speaker #5: Thank you, Pascal, and good afternoon, ladies and gentlemen. First, the key finding regarding our business performance in the first half of 2026: MLP Group achieved a new record high in both total revenue and earnings before interest and taxes—EBIT for short—and continued on its growth trajectory.

Reinhard Loose: Thank you, Pascal, and good afternoon, ladies and gentlemen. First, the key finding regarding our business performance in H1 2026. MLP Group achieved a new record high in both total revenue and earnings before interest and taxes, or EBIT for short, and continued on its growth trajectory. After we already made a good start to the year in Q1, we were then able to deliver a particularly strong Q2. Across the H1, we recorded growth in all three competence fields: wealth, life and health, and property and casualty. Revenue growth was particularly strong in the property and casualty and wealth competence fields. At the same time, MLP Group also increased the key figures relevant to future revenue development to new record levels. This applies equally to the assets under management and the non-life insurance premium volume.

Speaker #5: After we already made a good start to the year in the first quarter, we were then able to deliver a particularly strong second quarter.

Speaker #5: Across the first half-year, we recorded growth in all three competence fields: Wealth, Life and Health, and Property and Casualty. Revenue growth was particularly strong in the Property and Casualty and Wealth competence fields.

Speaker #5: At the same time, MLP Group also increased the key figures relevant to future revenue development to new record levels. This applies equally to the assets under management and the non-life insurance premium volume.

Speaker #5: The success of the MLP Group is, above all, the result of continuous and highly targeted development over recent years. We have positioned the company on a significantly broader footing and strategically interlinked the individual areas to reinforce each other.

Reinhard Loose: The success of the MLP Group is above all the result of the continuous and highly targeted development over recent years. We have positioned the company on a significantly broader footing and strategically interlinked the individual divisions in such a way that they reinforce each other. In the Q1 2026, the resilience of our business model became clearly evident. We were able to successfully withstand the negative external factors resulting from the conflict in the Persian Gulf. We achieved this despite the fact that the challenges facing the German economy and the volatility in the capital market increased sharply during this period, and consumers were noticeably unsettled. In the Q2, it became particularly clear what growth potential we can unlock with our business model now and in the future, and that, in a sense, we have only just begun to realize this potential.

Speaker #5: In the first quarter of 2026, the resilience of our business model became clearly evident. We were able to successfully withstand the negative external factors resulting from the conflicts in the Persian Gulf.

Speaker #5: We achieved this despite the fact that the challenges facing the German economy and the volatility in the capital market increased sharply during this period and consumers were noticeably unsettled.

Speaker #5: The second quarter, it became particularly clear what growth potential we can unlock with our business model now and in the future. And that, in a sense, we have only just begun to realize this potential.

Speaker #5: Both of these factors—resilience and growth potential—are based on the fact that we have invested in a focused manner in the past. In digitalization, artificial intelligence, training, quality, and innovation.

Reinhard Loose: Both of these factors, resilience and growth potential, are based on the fact that we have invested in a focused manner in the past, in digitalization, artificial intelligence, training, quality, and innovation. These investments across the entire MLP Group are paying off. At the same time, we continue to work hard on expanding our high-quality range of services in a targeted manner, not only for our private clients, but in particular, also for our corporate clients. In terms of EBIT, MLP was able to record a significant increase, particularly in the Q2, compared with the same period of the previous year. Particularly an increase in assets under management, higher performance-based compensation, and an improved interest result positively influenced this very strong development. In short, we are on a very good path, both for the full year and for the years ahead.

Speaker #5: And these investments across the entire MLP Group are paying off. At the same time, we continue to work hard on expanding our high-quality range of services in a targeted manner—not only for our private clients, but in particular also for our corporate clients.

Speaker #5: In terms of EBIT, MLP was able to record a significant increase. Particularly in the second quarter, compared with the same period of the previous year.

Speaker #5: Particularly management, higher performance-based compensation, and an improved interest result positively influenced this very strong development. In short, we are on a very good path, both for the full year and for the years ahead.

Speaker #5: We are confirming our EBIT full year forecast for 2026 of 100 to 110 million euros. At the same time, we are also reaffirming our planning to achieve EBIT of 140 to 155 million euros by the end of 2028.

Reinhard Loose: We are confirming our EBIT full-year forecast for 2026 of EUR 100 to 110 million. At the same time, we are also reaffirming our planning to achieve EBIT of EUR 140 to 155 million by the end of 2028. On slide 4 of the presentation, you will find an overview of revenue development. In the H1, we increased total revenue by 10%, thereby reaching a new record high of around EUR 583 million. Alongside growth potential, our business model also offers a high degree of stability, as reflected in the large proportion of recurring revenue. At the end of 2025, the figure stood at around 70%. We generate recurring revenue through the continuous high-quality support we provide to our existing clients across the entire MLP Group, above all in the property and casualty and wealth competence fields.

Reinhard Loose: We are confirming our EBIT full-year forecast for 2026 of EUR 100 to 110 million. At the same time, we are also reaffirming our planning to achieve EBIT of EUR 140 to 155 million by the end of 2028. On slide four of the presentation, you will find an overview of revenue development. In the H1, we increased total revenue by 10%, thereby reaching a new record high of around EUR 583 million. Alongside growth potential, our business model also offers a high degree of stability, as reflected in the large proportion of recurring revenue. At the end of 2025, the figure stood at around 70%. We generate recurring revenue through the continuous high-quality support we provide to our existing clients across the entire MLP Group, above all in the property and casualty and wealth competence fields.

Speaker #5: On slide 4 of the presentation, you will find an overview of revenue development. In the first six months, we increased total revenue by 10%, thereby reaching a new record high of around 583 million euros.

Speaker #5: Alongside growth potential, our business model also offers a high degree of stability, as reflected in the large proportion of recurring revenue. At the end of 2025, this figure stood at 70%.

Speaker #5: We generate recurring revenue through the continuous high-quality support we provide to our existing clients, across the entire MLP Group, above all in the property and casualty and wealth competence fields.

Speaker #5: The remaining portion of revenue comes from our new business, particularly in the life and health competence field. In the first half of 2026, the Group grew across all three competence fields.

Reinhard Loose: The remaining portion of revenue comes from our new business, particularly in the life and health competence field. In the H1 2026, the group grew across all three competence fields. The property and casualty competence field, with growth of 12%, and the wealth competence field with growth of 11%, performed particularly strong. The key driver in the property and casualty competence field was the non-life insurance premium volume managed for corporate and private clients, which we significantly expanded compared with the same period of the previous year. In the wealth competence field, MLP recorded notably higher revenue and wealth management in particular, resulting from the further strong growth in assets under management and from performance-based compensation. The MLP Group also recorded a positive development in the life and health competence field. Given the persistently challenging market environment, this is anything but a given.

Speaker #5: The property and casualty competence field, with growth of 12%, and the wealth competence field, with growth of 11%, performed particularly strongly. The key driver in the property and casualty competence field was the non-life insurance premium volume managed for corporate and private clients, which we significantly expanded compared with the same period of the previous year.

Speaker #5: In the wealth competence field, MLP recorded notably higher revenue in wealth management in particular, resulting from the further strong growth in assets under management and from performance-based compensation.

Speaker #5: The MLP Group also recorded a positive development in the life and health competence field. Given the persistently challenging market environment, this is anything but a given.

Speaker #5: Within the life and health competence field, both the old-age provision business field and the health insurance business field were slightly above the previous year's levels.

Reinhard Loose: Within the life and health competence field, both the old-age provision business field and the health insurance business field were slightly above the previous year's levels. In the others competence field, revenue remained stable. The continuing high level of trust that our clients place in our consulting services is also reflected in our key figures. These figures are an important indicator of the MLP Group's future revenue development. It is particularly encouraging that despite the temporary decline of the capital markets during the H1 of the year, we were able to increase assets under management significantly to a new record level of EUR 68.8 billion. This development once again underlines the substance of our business model and the quality of our long-term client relationships. Our second key figure also recorded a significant increase. The non-life insurance premium volume reached a new record high of EUR 865 million.

Speaker #5: In the Others competence field, revenue remained stable. The continuing high level of trust that our clients place in our consulting services is also reflected in our key figures.

Speaker #5: These figures are an important indicator of the MLP Group's future revenue development. It is particularly encouraging that, despite the temporary decline in the capital markets during the first half of the year, we're able to increase assets under management significantly to a new record level of 68.8 billion euros.

Speaker #5: This development once again underlines the substance of our business model and the quality of our long-term client relationships. Our second key figure also recorded a significant increase.

Speaker #5: The non-life insurance premium volume reached a new record high of €865 million. The multi-year development shows that we are growing continuously and sustainably in this area.

Reinhard Loose: The multi-year development shows that we are growing continuously and sustainably in this area. In property and casualty, we have established a significant market position. For the MLP Group, this means additional stability in the portfolio business and, at the same time, further growth potential. You will find the current income statement on slide seven. The H1 of 2026, the MLP Group increased EBIT to a new record high of EUR 64 million. This development reflects, in particular, the strong growth in total revenue and is also an expression of our continued disciplined cost management. It once again demonstrates the resilience of our strategically enhanced business model. At the same time, we have significant growth potential. I will go into this in more detail shortly when discussing our forecast and planning.

Speaker #5: In property and casualty, we have established a significant market position. For the MLP Group, this means additional stability in the portfolio business and, at the same time, further growth potential.

Speaker #5: You will find the current income statement on slide 7. The first half of 2026, the MLP Group increased EBIT to a new record high of 64 million euros.

Speaker #5: This development reflects in particular the strong growth in total revenue and is also an expression of our continued disciplined cost management. It once again demonstrates the resilience of our strategically enhanced business model.

Speaker #5: At the same time, we have significant growth potential. I will go into this in more detail shortly, when discussing our forecast and planning. If you now take a brief look at the right-hand side of the slide, you will see the key figures that underline our solid balance sheet structure.

Reinhard Loose: If you now take a brief look at the right-hand side of the slide, you will see the key figures that underline our solid balance sheet structure. Compared to the 2025 balance sheet date, equity increased from EUR 585 to EUR 589 million. The regulatory core capital ratio is at 17.7% as of 30 June 2026. Our short-term liquidity position also remains very comfortable. The liquidity coverage ratio, LCR for short, stood at 831% and was therefore significantly above the regulatory requirement of 100%. I would now like to explain individual strategic business developments within the group in some more detail. I will begin with the expansion of our business model with medical professionals. Here, following a successful trial period, we have developed a new offering called Praxeasy, which has now been available to our medical professional clients for several weeks and is attracting noticeable interest.

Speaker #5: Compared with the 2025 balance sheet date, equity increased from €585 million to €589 million. The regulatory core capital ratio stood at 17.7% as of June 30, 2026.

Speaker #5: Our short-term liquidity position also remains very comfortable. The liquidity coverage ratio, or LCR for short, stood at 831% and was therefore significantly above the regulatory requirement of 100%.

Speaker #5: I would now like to explain individual strategic business developments within the Group in some more detail. I will begin with the expansion of our business model with medical professionals.

Speaker #5: Here, following a successful trial period, we have developed a new offering called PraxEasy, which has now been available to our medical professional clients for several weeks and is attracting noticeable interest.

Speaker #5: In the market for medical professionals, where we already hold a strong position today, we support our clients in their financial matters, both private and business-related.

Reinhard Loose: In the market for medical professionals, where we already hold a strong position today, we support our clients in their financial matters, both private and business related. There is a clear trend. The willingness among doctors to set up in practice is declining noticeably. Above all, due to growing bureaucracy, a shortage of skilled staff, and increasing cost pressure in the outpatient care system. This is precisely where our new offering comes in. The AI-supported solution provides targeted relief for doctors in private practice and administrative processes such as appointment and patient management, thereby strengthening operational performance in day-to-day practice. AI-supported processes flanked by an operation center and integrated into established practice management systems create tangible efficiency gains without any system discontinuity. At the same time, one point is crucial to us. Unlike other market models, our new offering expressly supports the entrepreneurial independence of doctors.

Speaker #5: And there is a clear trend. The willingness among doctors to set up in practice is declining noticeably, above all due to growing bureaucracy, a shortage of skilled staff, and increasing cost pressure in the outpatient care system.

Speaker #5: This is precisely where our new offering comes in. The AI-supported solution provides targeted relief for doctors in private practice and helps with administrative processes such as appointment and patient management.

Speaker #5: Thereby strengthening operational performance in day-to-day practice. AI-supported processes flanked by an operations center and integrated into established practice management systems create tangible efficiency gains without any system discontinuities.

Speaker #5: At the same time, one point is crucial to us: unlike other market models, our new offering expressly supports the entrepreneurial independence of doctors. This is one of the reasons why we received positive feedback in the preceding pilot phase.

Reinhard Loose: This is one of the reasons why we received positive feedback in the preceding pilot phase. In short, we are making a concrete contribution to the future viability of doctors in private practice, creating new points of contact, particularly with younger medical professionals, and at the same time underlining our ambition to support this client group holistically from a 360-degree perspective. Obviously, no data whatsoever is transferred to MLP, including patient data. Everything remains with the medical professional. This new offering is also another example of the consistent expansion and deployment of our digital platforms within the MLP Group. With these independent units, we create concrete benefits for clients, in this case, by relieving doctors in private practice of demanding administrative processes. The individual platforms each offer their own attractive revenue potential, which is further expanded through networking within the group.

Speaker #5: In short, we are making a concrete contribution to the future viability of doctors in private practice, creating new points of contact, particularly with younger medical professionals, and at the same time underlining our ambition to support this client group holistically from a 360-degree perspective.

Speaker #5: Obviously, no data whatsoever is transferred to MLP, including patient data. Everything remains with the medical professional. This new offering is also another example of the consistent expansion and deployment of our digital platforms within the MLP Group.

Speaker #5: With these independent units, we create concrete benefits for clients in this case by relieving doctors in private practice of demanding administrative processes. The individual platforms each offer their own attractive revenue potential, which is further expanded through networking within the Group.

Speaker #5: For example, in future, you will also be able to offer doctors in private practice integrated access to our corporate benefits platform Pextra. Key elements of our platform strategy also include the scalability and AI capability of the individual platforms.

Reinhard Loose: For example, in future, we will also be able to offer doctors in private practice integrated access to our corporate benefits platform, :pxtra. Key elements of our platform strategy also include the scalability and AI capability of the individual platforms. Their interconnectedness and mutual integration create additional benefits for our clients and, at the same time, further potential for MLP. Another strategically important topic is the new Altersvorsorgedepot initiated by the government, which is intended to replace the current Riester pension as of 1 January 2027. This will fundamentally change the framework conditions in the market for subsidized private pension provision. What is essential about? The capital markets will play a significantly stronger role in subsidized private pension provision, and there will be greater flexibility for consumers. Both developments are to be welcomed. This approach will be implemented through new product solutions.

Speaker #5: Their interconnectedness and mutual integration create additional benefits for our clients and, at the same time, further potential for MLP. Another strategically important topic is the new Altersvorsorge Depot.

Speaker #5: Initiated by the government, this is intended to replace the current Riester pension as of January 1, 2027. This will fundamentally change the framework conditions in the market for subsidized private pension provision.

Speaker #5: What is the essential point? The capital markets will play a significantly stronger role in subsidized private pension provision, and there will be greater flexibility for consumers. Both developments are to be welcomed.

Speaker #5: This approach will be implemented through new product solutions. Guarantees will remain possible but they are no longer mandatory. The aim is, above all, to increase return opportunities.

Reinhard Loose: Guarantees will remain possible, but they are no longer mandatory. The aim is, above all, to increase return opportunities. In addition, a payout plan instead of a lifelong pension will also be possible in the future. The group of eligible persons will be expanded. At the same time, more contribution proportional subsidized are planned. MLP has, of course, prepared for these changes, both in terms of consulting and products. Our clients will be able to use an Altersvorsorgedepot anchored at MLP Banking. They can choose between the standard product that must be offered and client-specific solutions. Insured solutions from our quality assessed product partners will continue to be available for our consultants to broker as well. For our clients, this development brings new opportunities, while at the same time increasing the need for consulting.

Speaker #5: In addition, the payout plan, instead of a lifelong pension, will also be possible in the future. The Group of eligible persons will be expanded.

Speaker #5: At the same time, more contribution-proportional subsidies are planned. MLP has, of course, prepared for these changes both in terms of consulting and products.

Speaker #5: Our clients will be able to use an Altersvorsorge Depot anchored at MLP Banking. They can choose between the standard product that must be offered and client-specific solutions.

Speaker #5: Insurance solutions from our quality assessed product partners will continue to be available for our consultants to broker as well. For our clients, this development brings new opportunities.

Speaker #5: While at the same time increasing their need for consulting. This is because the new world of subsidized outage provision will inevitably also create a certain degree of complexity.

Reinhard Loose: This is because the new world of subsidized old age provision will inevitably also create a certain degree of complexity for new pension savers, as well as for existing clients. The latter are faced with the question of whether they should now switch to the new world or whether the old one is more advantageous for them. Our consultants are the first point of contact here and have already started discussing the retirement savings account with their clients as well as with prospective clients. It is already becoming evident that consulting will be the key differentiating factor, not least when compared to purely digital providers. MLP can support a wide range of client groups in finding the solution that is right for them. I now come to our forecast for the financial year 2026.

Speaker #5: This applies to new pension savers as well as existing clients. The latter are faced with the question of whether they should now switch to the new world, or whether the old one is more advantageous for them.

Speaker #5: Our consultants are the first point of contact here and have already started discussing the retirement savings account with their clients as well as with prospective clients.

Speaker #5: It is already becoming evident that consulting will be the key differentiating factor. Not least when compared to purely digital providers. MLP can support a wide range of client groups in finding the solution that is right for them.

Speaker #5: I now come to our forecast for the financial year 2026. MLP continues to expect the established growth trajectory to carry forward and confirms its EBIT forecast of 100 to 110 million euros.

Reinhard Loose: MLP continues to expect the established growth trajectory to carry forward and confirms its EBIT forecast of EUR 100 to 110 million. Increasing revenue in all three competence fields, wealth, life and health, and property and casualty, is expected to contribute to the forecast earnings growth in 2026. Today, we are therefore also confirming the revenue forecast in these three competence fields. The performance-based compensations that we generate in the wealth competence field are traditionally forecasted conservatively. Our midterm planning for the end of 2028, which we are reaffirming today, also remains unchanged. We continue to plan for EBIT of EUR 140 to 155 million, with total revenue of EUR 1.3 to 1.4 billion. Moreover, the following applies. Performance-based compensation, which, as we have often said, is also heavily influenced by external factors, has been taken into account conservatively and only to a limited extent.

Speaker #5: Increasing revenue in all three competence fields wealth, life and health, and property and casualty is expected to contribute to the forecast earnings growth in 2026.

Speaker #5: Today, we are therefore also confirming the revenue forecasts in these three competence fields. The performance-based compensations that we generate in the wealth competence field are traditionally forecasted conservatively.

Speaker #5: Our mid-term planning for the end of 2028, which we are reaffirming today, also remains unchanged. We continue to plan for EBIT of €140 to €155 million, with total revenue of €1.3 to €1.4 billion.

Speaker #5: Moreover, the following applies. Performance-based compensation which, as we have often said, is also heavily influenced by external factors has been taken into account conservatively and only to a limited extent.

Speaker #5: By contrast, a significant increase in the key figures namely assets under management and the managed non-life insurance premium volume on property and casualty has been factored in.

Reinhard Loose: By contrast, the significant increase in the key figures, namely assets under management and the managed non-life insurance premium volume on property and casualty, has been factored in. The strategically planned unlocking of potential in consulting family clients, the targeted expansion of the corporate client business, and the multi-asset approach for institutional and high net worth clients are expected to lead to sustained growth across all competence fields. The targeted significant increase in earnings will also be supported by the digitalization strategy and, in particular, AI applications, which are expected to drive ongoing efficiency gains and improvements in client support as well as for our client consultants. This is complemented by continued disciplined and tight cost management. Ladies and gentlemen, I now come to the summary. First, the success of the MLP Group is above all the result of the continuous and highly targeted development over recent years.

Speaker #5: The strategically planned unlocking of potential in consulting family clients, the targeted expansion of the corporate client business, and the multi-asset approach for institutional and high net worth clients are expected to lead to sustained growth across all competence fields.

Speaker #5: The targeted significant increase in earnings will also be supported by the digitization strategy and, in particular, AI applications which are expected to derive ongoing efficiency gains and improvements in the client support as well as for our client consultants.

Speaker #5: This is complemented by continued disciplined and tight cost management. Ladies and gentlemen, I now come to the summary. First, the success of the MLP Group is above all the result of the continuous and highly targeted development over recent years.

Speaker #5: Our investments in digitization artificial intelligence, training, quality, and innovation are increasingly paying off. And we have only just begun to realize our potential. Second, following the good results of the first half of the year, we have established an excellent position for achieving our EBIT forecast for the full year 2026.

Reinhard Loose: Our investment in digitalization, artificial intelligence, training, quality, and innovation are increasingly paying off. We have only just begun to realize our potential. Second, following the good results of the H1 of the year, we have established an excellent position for achieving our EBIT forecast for the full year 2026. Third, we are pressing ahead in a targeted manner with our strategic priorities, namely asset growth and the expansion of the corporate client business, as well as the client-centered use of artificial intelligence. We continue to keep a close eye on costs. Accordingly, we are also on track with our midterm planning for 2028. Thank you for your attention and your interest. I will now be happy to answer your questions.

Speaker #5: Third, we are pressing ahead in the targeted manner with our strategic priorities. Namely asset growth and the expansion of the corporate client business. As well as the client-centered use of artificial intelligence.

Speaker #5: And we continue to keep a close eye on costs. Accordingly, we are also on track with our mid-term planning for 2028. Thank you for your attention and your interest.

Speaker #5: I will now be happy to answer your questions.

Speaker #1: Thank you very much. Ladies and gentlemen, if you would like to ask a question, please press star nine and pound key on your telephone keypad.

Operator 2: Thank you very much. Ladies and gentlemen, if you would like to ask a question, please press star 9 and pound key on your telephone keypad. If you would like to revoke your question, press star 3 and pound key. You can also use the dial-in function in the webcast and raise your hand if you would like to ask a question by phone. I repeat, to ask a question, press star 9 and pound key on your telephone keypad. We already have a few questions on the queue. The first question is from Simon Keller from Nuways.

Operator: Thank you very much. Ladies and gentlemen, if you would like to ask a question, please press star nine and pound key on your telephone keypad. If you would like to revoke your question, press star three and pound key. You can also use the dial-in function in the webcast and raise your hand if you would like to ask a question by phone. I repeat, to ask a question, press star 9 and pound key on your telephone keypad. We already have a few questions on the queue. The first question is from Simon Keller from Nuways.

Speaker #1: If you would like to revoke your question, press star-three and the pound key. You can also use the dial-in function in the webcast and raise your hand if you would like to ask a question by phone.

Speaker #1: I repeat, to ask a question, press star nine and pound key on your telephone keypad. We already have a few questions on the queue.

Speaker #1: The first question is from Simon Keller, from New Wave.

Speaker #2: Good afternoon. Thanks for taking my questions. I'll start off with three. Firstly, what drove the improvement in life and health in Q2? And do you see the momentum that you've built in Q2 continuing in Q3?

Simon Keller: Good afternoon. Thanks for taking my questions. I will start off with three. Firstly, what drove the improvement in Life & Health in Q2, and do you see the momentum that you have built in Q2 continuing in Q3? Secondly, what was the level of performance fees you had in Q2? Can you remind us also, what is the increment, the EBIT margin on these performance fees? I guess also somewhat related is my third question. What is the personnel cost run rate that we should assume for Q3, i.e., without bonus components that I think might have impacted Q2? Maybe you can clarify this. Thank you.

Speaker #2: Secondly, what was the level of performance fees you had in Q2? Can you remind us also what's the incremental EBIT margin on these performance fees?

Speaker #2: And I guess also somewhat related is my third question. What is the personnel cost run rate that we should assume for Q3, i.e., without bonus components that I think might have impacted Q2, yeah?

Speaker #2: Maybe you can clarify this. Thank you.

Speaker #3: I mean, thank you for the questions. Life and health, we overall I think there is no special effect. We just saw a little bit higher interest there in our consulting discussions with our clients.

Reinhard Loose: Simon, thank you for your questions. Life & Health. I think there is no special effects. We just saw a little bit higher interest there in our consulting discussions with our clients. I would see, especially in health, where we saw a higher growth rate. I think especially in health, it will continue like this also or in a similar manner, also in the H2 of the year on Q3. Due to all the discussions around, let us say, the health system, this definitely supports the questions of our customers and therefore supports the need for more consultancy. Therefore, especially in health, we are positive. Life, as we all have in mind, especially in Q4, is the strongest quarter for Life. Therefore, it is also important that it continues with the slightly positive tendons of the H1 of the year. Performance fee in the second quarter.

Speaker #3: I would see especially in health, where we saw a higher growth rate, I think especially in health, it will continue like this also or in a similar manner also in the second half of the year on Q3.

Speaker #3: Due to all the discussions around, let's say, the health system, this definitely supports our the questions of our customers and therefore supports the need for more consultancy.

Speaker #3: And therefore, especially in health, we are positive life as we all have in mind, especially in the Q4 is the strongest quarter for life.

Speaker #3: And therefore, it's also important that it continues with the, let's say, slightly positive tendence of the first half of the year. Performance fees, in the second quarter, I would like to bring, let's say, the first half of the year, the pure performance fees of the first half of the year were 8.5 million.

Reinhard Loose: I would like to bring, let us say, the H1 of the year. The pure performance fees for the H1 of the year were EUR 8.5 million. Additionally, we had, by the way, only in Q2, fees coming from carries of EUR 3.6 million. The EBIT effect of the carry in this quarter was almost zero. The EBIT effect of the performance fees is around two-third of the overall number. Therefore, let us say, the performance fees in this second quarter and then in the H1 of the year were a little bit special. The normal ways that we have around two-third of EBIT effects out of the overall number. Personnel costs. Obviously, there was a bonus effect. Nevertheless, we also had an increase in staff in some areas. FERI, Banking, and DOMCURA, especially, due to also the growth in business. But you are totally right.

Reinhard Loose: I would like to bring, let us say, the H1 of the year. The pure performance fees for the H1 of the year were EUR 8.5 million. Additionally, we had, by the way, only in Q2, fees coming from carries of EUR 3.6 million. The EBIT effect of the carry in this quarter was almost zero. The EBIT effect of the performance fees is around two-third of the overall number. Therefore, let us say, the performance fees in this Q2 and then in the H1 of the year were a little bit special. The normal ways that we have around two-third of EBIT effects out of the overall number. Personnel costs. Obviously, there was a bonus effect. Nevertheless, we also had an increase in staff in some areas. FERI, Banking, and DOMCURA, especially, due to also the growth in business. But you are totally right.

Speaker #3: And additionally, we had, by the way, only in Q2, carry fees coming from carries of €3.6 million. The EBIT effect of the carries in this quarter was almost zero.

Speaker #3: The EBIT effect of the performance fees is around two-thirds of the overall number. And therefore, let's say, the performance fees in this second quarter and then in the first half of the year are—or were—a little bit special.

Speaker #3: The normal way is that we have around two-thirds of EBIT effect out of the overall number. Personnel costs, obviously, there was a bonus effect nevertheless.

Speaker #3: We also had an increase in staff in some areas—Ferry, Banking, and Domcura especially—due also to the growth in business. But you're totally right.

Reinhard Loose: The bonus effect has a high impact there. Let us say we all hope that the bonus effect also will have a high impact on the H2 of the year. But the run rate for the pure personnel cost is around 3%. I hope this answered your question.

Speaker #3: The bonus effect has a high impact there. And let's say, we all hope that the bonus effect also will have a high impact in the second half of the year.

Speaker #3: But the run rate for the pure personnel cost is around 3%. I hope this answered your question.

Simon Keller: It does. Thank you very much.

Speaker #2: It does. Thank you very much.

Speaker #3: You're welcome.

Reinhard Loose: You are welcome.

Operator 2: Much. The next question is from Marius Furberg from Berenberg. Please go ahead.

Operator: Much. The next question is from Marius Furberg from Berenberg. Please go ahead.

Speaker #1: Much. The next question is from Marios Furberg from Brenberg. Please go ahead.

Speaker #4: Yeah, hi. Thanks for taking my questions. I have a few. The first one is on your guidance, which you have remained unchanged at €110 million EBIT.

Marius Furberg: Yeah. Hi, thanks for taking my questions. A few from my. The first one on your guidance, which you have remained unchanged at the EUR 110 EBIT. Compared to last year, we will hopefully not see a respective impairment in Q4. Looking at your underlying performance in your general business and deducting those, I think it was 9.5 million impairment in last year Q4. EBIT should, at least in the H2 of the year, be in the area of EUR 55 to 60 million, in my view, which would then imply that you run above your guidance for the full year. What are your thoughts on this? The second question is with regard to the Altersvorsorgedepot. Can you quantify the revenue potential of the introduction of this over the next three to five years? A ballpark area here would be nice to know.

Speaker #4: Compared to last year, we will hopefully not see a similar impairment in Q4. And looking at your underlying performance and your general business...

Speaker #4: And, deducting those, I think it was a €9.5 million impairment in last year's Q4. EBIT should at least, in the second half of the year, be in the area of €55 to €60 million.

Speaker #4: In my view, which yeah, which would then imply that you run above your guidance for the full year. So what's your what are your thoughts on this?

Speaker #4: The second question, which is with regard to the Atlas Forzauga depot: can you quantify the revenue potential of the introduction of this over the next three to five years? A ballpark figure here would be nice to know.

Speaker #4: Also, what do you expect with regard to EBIT there? And the last one, which is to prax easy. Is this included in the financial consulting segment?

Marius Furberg: Also, what do you expect with regard to EBIT there? The last one is to Praxeasy. Is this included in the Finanzberatung segment? How is the monetization of Praxeasy structured? Maybe one additional question. I saw that you have resegmented quite a lot with Deutschland.Immobilien and the Finanzberatung segment. Can you please elaborate on that a little bit and how we should model this in our financial models, please?

Speaker #4: And how is the monetization of Prax Easy structured? And maybe one additional question, I saw that you have resegmented quite a lot with Deutschland Immobilien and the financial consulting segment.

Speaker #4: Can you please elaborate on that a little bit, and explain how we should model this in our financial models, please?

Speaker #3: Furberg, thank you for the question. Very good questions. Let's start with the guidance. Yes, obviously, we had a good start in the first half of the year.

Reinhard Loose: Furberg, thank you for the question. Very good questions. Let's start with the guidance. Yes, obviously, we had a good start of the H1. The remaining question is what will we see in the H2, not only from, let's say, what we can influence directly on our own, but especially how will the capital market will act or react. We saw the volatility, for example, at the end of Q1. We saw that the markets were down, and you saw that, for example, in our assets under management, we saw this, that there was no performance fee or almost no performance fees. The question is what comes in the H2.

Speaker #3: The remaining question is what will we see in the second half of the year, not only from, let's say, what we can influence directly on our own, but especially how will the capital market will act or react.

Speaker #3: And we saw the volatility, for example, at the end of Q1. We saw that the markets were down, and you saw that, for example, in our assets under management, we saw that there was no performance due to almost no performance fees.

Speaker #3: And the question is, what comes in the second half of the year? Let's say it this way: if the market continues as good as they are right now, then obviously there might be a potential at the end of the next quarter.

Reinhard Loose: Let's say this way, if the market continues as good as they are right now, then obviously there might be a potential at the end of the next quarter, to discuss about changing our guidance. But at the moment, we are a little bit, let's say, concerned or anxious might be too much, but at least concerned what the capital markets will bring in the H2. That was the reason why we didn't change our guidance. In, let's say, our expectation for the next month or for the H2 are no more performance fees included. Definitely this will be something which will influence the results also of the H2. Altersvorsorgedepot, you asked me to quantify this. To be quite honest, at the moment, we can't.

Speaker #3: To discuss changing our guidance. But at the moment, we are a little bit, let's say, concerned—perhaps "anxious" is too strong a word—but at least concerned about what the capital markets will bring in the second half of the year.

Speaker #3: And that was the reason why we didn't change our guidance. And in, let's say, our expectation for the next month or for the second half of the year are no more performance fees included.

Speaker #3: And definitely, this will be something which will influence the results also for the second half of the year. Altas Forzauga depot, you asked me to quantify this—to be quite honest,

Speaker #3: At the moment, we can't. The reason is it's more or less a new market with new market participants, with many, many questions still how the markets will be how the market will be, let's say, divided, seen, split up.

Reinhard Loose: The reason is it's more or less a new market with new market participants, with many questions still how the market will be, let's say, divided, split up. We see it overall as a positive effect for us, definitely. But even internally, we at the moment feel very unsecured to plan it right now. I think, three months later, we will know more, but at the moment, there are still too many questions. Who will, how step into the market and especially when. We are preparing to start 1 January. We personally think or we believe that it's important to start very early to be from the beginning in the market. We know that some market participants might have problems to start on 1 January. Others definitely will be there. Therefore, many questions there at the moment. We can't quantify this. The last question, Praxeasy.

Speaker #3: We see it overall as a positive effect for us, definitely. But even internally, we at the moment feel very uncertain about planning it right now.

Speaker #3: I think three months later, we will know more. But at the moment, there are still too many questions who will how step into the market and especially when we are preparing to start in the 1st of January.

Speaker #3: We personally think or we believe that it's important to start very early to be from the beginning in the market. We know that some market participants might have problems to start on the 1st of January.

Speaker #3: Others definitely will be there. Therefore, many questions there at the moment we can't quantify this. The last question, prax easy, it will be part of the segment of Finanzberatung.

Reinhard Loose: It will be part of the segment of Finanzberatung. Obviously, at the moment there are almost no. Or in the figures of the H1, there is no influence of Praxeasy because it just started. Let's see how this develops. The acceptance in the market, the first reactions were quite good. Now we have to start with the medical doctors there to reach the revenues we need there. The last question was concerning the Vertrieb Deutschland, the Deutschland.Immobilien segment and Finanzberatung. We did a restructuring with the following idea behind it. In all the areas we are in life and health, or in non-life insurance, the Finanzberatung segment has a product management inside the company, MLP Finanzberatung. The only case where it was not so was in the real estate segment.

Speaker #3: And obviously, at the moment, there are almost no or there are in the figures of the first half year, there is no there is no influence of prax easy because it's just started.

Speaker #3: Let's see. Let's see how this develops. The acceptance in the market—the first reactions were quite good. And now we have to start with the medical doctors there.

Speaker #3: To reach their efficient or the revenues we need there. And the last question was concerning the Vertrieb Deutschland, the Deutschland Immobilien segment and Finanzberatung.

Speaker #3: We did a restructuring with the following idea behind it: in all the areas we are in – life and health, or in non-life insurance – the Finanzberatung segment has product management inside the company MLP Finanzberatung.

Speaker #3: The only case where it was not so was in the real estate segment. And we decided to put the sales support and the product management into Finanzberatung as well because 95% of the revenues in sales in were done via Finanzberatung.

Reinhard Loose: We decided to put the sales support and the product management into Finanzberatung as well, because 95% of the revenues in sales were done via Finanzberatung. With this, we want to, on one side, strengthen the support for the consultants of MLP. On the other side, we want to focus more on the sales channel via third parties. Now Deutschland.Immobilien can focus more on this channel. Therefore, we, let's say, sold the companies, Vertrieb Deutschland, which includes the sales support and the product management from Deutschland.Immobilien to Finanzberatung, with the effect that there was a profit out of this transaction, a price of EUR 60 million going from Finanzberatung to the segment Deutschland.Immobilien, which obviously on group level is reconciled. You will find this therefore also the higher numbers in the column consolidation. Therefore, on group level, there is no effect.

Speaker #3: And with this, we want to on one side strengthen the support for the consultants of MLP. On the other side, we want to focus more on the sales channel via third parties.

Speaker #3: And now, Deutschland Immobilien can focus more on this channel. With the sale of Vertrieb Deutschland, we, let's say, sold the company Vertrieb Deutschland, which includes the sales support and the product management from Deutschland Immobilien to Finanzberatung.

Speaker #3: With the effect that there was a profit out of this transaction, or a price of €16 million going from Finanzberatung to the segment Deutschland Immobilien—which, obviously, on group level is reconciled. You’ll therefore also find very high numbers in the column 'consolidation.'

Speaker #3: And therefore, on group level, there is no effect; it's only an effect in the respective segments. I hope this answered your questions.

Reinhard Loose: It is only an effect in the respective segments. I hope this answered your questions.

Speaker #1: Okay. Thank you very much. So Deutschland Immobilien basically remains with a very yeah, I would say single digit euro million revenue business then. Although the remaining quarters?

Marius Furberg: Okay. Thank you very much. Deutschland.Immobilien basically remains with a very, I would say, single digit EUR million revenue business then for the remaining quarters?

Reinhard Loose: It remains with, let's say, as I said, the focus on the third party business, which definitely is, I would agree, a single million digit revenues, and possible effects from sales of some of the included projects. At the moment, as you know, we have, let's say, four projects more or less on hold. There might be a start in the last quarter, the sale of one of the real estate projects.

Speaker #3: It remains with, let's say, the as I said, the focus on the third-party business, which definitely is yeah, I would agree, a single million digit revenues.

Speaker #3: And possible effects from sales of some of the included projects. At the moment, as you know, we have, let's say, four projects more or less on hold.

Speaker #3: And there might be a start in the last quarter the sale of one of the real estate projects.

Speaker #1: Got it. Thank you.

Marius Furberg: Got it. Thank you.

Speaker #3: You're welcome.

Reinhard Loose: You are welcome.

Speaker #2: Thank you. A quick reminder: if you would like to ask a question, please press star-nine and the pound key on your telephone keypad. You can also use the dial-in function and raise your hand.

Operator 2: Much. A quick reminder, if you would like to ask a question, please press star nine and pound key on your telephone keypad. You can also use the dial-in function and raise your hand. The next question is from Gerhard Schwarz from Baader Bank. Please go ahead.

Operator: Much. A quick reminder, if you would like to ask a question, please press star nine and pound key on your telephone keypad. You can also use the dial-in function and raise your hand. The next question is from Gerhard Schwarz from Baader Bank. Please go ahead.

Speaker #2: The next question is from Gerhard Schwarz from Baader Bank. Please go ahead.

Speaker #1: Yes, thank you for taking my question. Basically, I have a question on the other income, which is obviously heavily influenced in some areas by this transaction you just mentioned.

Gerhard Schwarz: Yes. Thank you for taking my question. Basically, I have a question on the other income that was obviously heavily influenced in some areas by this transaction you just mentioned. But nonetheless, there is still a quite significant increase of your other income during the quarter, and this was EUR 7 million alone. Can you explain what drove this effect when the transaction of Deutschland.Immobilien was not the driver? I saw in some segments that you stated there would be an effect from higher performance fees, higher cost allocations, and there were overall lower provisions, which all might apply to this line. But what exactly was the main effect here? Thank you.

Speaker #1: But nonetheless, there is still a quite significant increase of your other income during the quarter. And this was 7 million alone. Can you explain what drove this effect when the transaction of Deutschland Immobilien was not the driver?

Speaker #1: saw in some segments that you stated there would be I an effect from higher performance fees. Higher cost allocations and there were overall lower provisions, which all might apply to this line.

Speaker #1: But what exactly was the main effect here? Thank you.

Speaker #3: You're welcome, Mr. Schwarz. I think a very relevant question. The main single effect comes from the carriers. I explained that this time the, let's say, performance phase compensation was split between the, let's say, normal performance fees coming from our own funds and that we have €3.6 million revenues from carriers from hedge funds, which we booked into other income.

Reinhard Loose: You are welcome, Mr. Schwarz. I think you have a very relevant question. The main single effect comes from the carries. I explained that this time the, let us say, performance-based compensation was split between the, let us say, normal performance fees coming from our own funds, and that we have EUR 3.6 million revenues from carries, from hedge funds, which we booked into other income. And therefore, EUR 3.6 million, which is the biggest single effect in this line, is due to this carry revenues.

Speaker #3: And therefore, 3.6 million which is the biggest single effect in this line is due to this carry revenues.

Speaker #1: Okay. Thank you.

Gerhard Schwarz: Okay. Thank you.

Speaker #3: You're welcome.

Reinhard Loose: You are welcome.

Speaker #2: So we have Simon Keller back on the line with a follow-up question. Simon, please go ahead.

Operator 2: Simon Keller back on the line with a follow-up question. Simon, please go ahead.

Operator: Simon Keller back on the line with a follow-up question. Simon, please go ahead.

Speaker #4: Yes. Two in fact, actually. Firstly, what were the net inflows on the wealth management business in Q2? And then a follow-up question on the Prax Easy business.

Simon Keller: Yes. Two in fact, actually. Firstly, what were the net inflows in the wealth management business in Q2? Then a follow-up question on the Praxeasy business. I was wondering whether this is basically supposed to be a profit-generating unit on its own, or whether we should rather see it as a marketing tool for our financial services that MLP is offering. If the latter is the case, I was wondering where you draw the line as to what your core competencies are and where you want to have marketing tools, so to say.

Speaker #4: I was wondering whether this is basically supposed to be a profit-generating unit on its own, or whether we should rather see it as a marketing tool for our financial services that MLP is offering.

Speaker #4: And if that is the case, I was wondering, yeah, where do you draw the line as to what your core competencies are, and, yeah, where you basically want to be basic or where you want to have marketing tools.

Speaker #4: Yeah, so to say.

Reinhard Loose: Net inflows, I will, let's say, speak again for the H1. We have in the H1 net outflows of EUR 0.4 billion. The main reason for that is that in our segment FERI, we had an outflow for consulting mandate. The customer is still there, but he had to reduce his consulting mandate because he had to turn this liquidity part into cash, and this was more than EUR 1 billion just with this single customer. Therefore, overall number, net outflows of EUR 0.4 billion. Allow me just to, let's say, underline one aspect, because overall, we still feel happy, not only due to the performance, because then you can calculate that the performance of EUR 3.4 billion for the H1 obviously helps us to increase our assets under management.

Speaker #3: Net inflows, I will, let's say, speak again for the first half of the year. We have in the first half of the year net outflows of 0.4 billion euro.

Speaker #3: The main reason for that is that in our segment ferry, we had an outflow for consulting mandate the customer is still there, but he has to reduce his consulting mandate because he has to carry to turn this liquidity part into cash.

Speaker #3: And this was more than 1 billion euro just with this single customer. Therefore, overall number and net outflows of 0.4 billion euro. But allow me just to, let's say, underline one aspect because overall we still feel happy not only due to the performance because then you can calculate that the performance of 3.4 billion euro for the first half of the year obviously helps us to increase our asset under management.

Speaker #3: What makes us feel quite confident is that, as you know, we have three areas: the institutional, the private, and the segment 'ferries', with more than €2 million in liquid assets.

Reinhard Loose: What, which makes us feel quite confident is that, as you know, we have three areas, the institutional, the private in the segment FERI with more than EUR 2 million liquid assets. Then we have the customers in the banking segment. In the banking segment, we were able to increase the assets under management to EUR 16.2 billion with net inflows of EUR 0.6 billion. This obviously is therefore important because there, the margin is, let's say, higher than in other areas, and therefore, overall, we feel quite good with the overall number. This was the number part concerning net inflows, and now comes more the, let's say, general explanation concerning Praxeasy. As you know, we have quite strong footprint in the medical practice overall, the segment for medical professionals.

Speaker #3: And then we have the customers in the banking segment. In the banking segment, we were able to increase the assets under management to €16.2 billion, with net inflows of €0.6 billion.

Speaker #3: And this, obviously, is therefore important because there, the margin is, let's say, higher than in other areas. And therefore, overall, we feel quite good with the overall number.

Speaker #3: This was a number part concerning net inflows. And now comes more the, let's say, general explanation concerning Prax Easy. As you know, we have quite strong footprint in the medical practice.

Speaker #3: Overall, the segment for medical professionals 20% of all doctors in Germany are amongst our customers. And especially strong we are in this area where we have doctors who have their own practice.

Reinhard Loose: 20% of all doctors in Germany are amongst our customers, especially strong we are in this area where we have doctors who have their own practice. Overall, this is going down, therefore, let's say we try to support this area for practices, not only for practices where we have just one owner, which is, let's say, the normal or was the normal case in the past, but also we need to support where we have more doctors together in the Medizinisches Versorgungszentrum or things like this. Therefore, we ask our question: how can we do this? How we support them with our financial consulting on one side?

Speaker #3: And overall, this is going down. And therefore, let's say, we try to support this area for practices not only for, let's say, for practices where we have just one owner which is, let's say, the normal or was a normal case in the past, but also we need to support where we have more doctors together in the medical and medicinischen Versorgungszentrum or things like this.

Speaker #3: And therefore, we ask our question: how can we do this? How can we support them with our financial consulting on one side? And part of the financial consulting also is the question: how do they organize their practice so that they can concentrate on their focus, being a doctor, and not concentrating on their financial needs or the financial questions they have?

Reinhard Loose: Part of the financial consulting also is the question: how do they organize their practice that they can concentrate on their focus being a doctor and not concentrating on their financial needs or the financial questions they have and the way how they manage their practice? Therefore, we had a lot of discussions and interviews, what would these customers and potential customers would need. The outcome was that they said, "Okay, we would like to have support from someone who has a view on economical questions, not only for the, let's say, pure economical questions, but also for the way how in an economical manner I can organize my own business." That was the reason why we then started, okay, then let's start with the company to support it.

Speaker #3: And the way how they manage their practice. And therefore, we had a lot of discussions and interviews what would these customers and potential customers would need and the outcome was that they said, okay, we would like to have support from someone who has a view on economic questions, not only for the, let's say, pure economic questions, but also for the way how on a economic manner I can organize my own business.

Speaker #3: And that was the reason why we then started, okay, then let's start with the company to support it. And obviously, it is something new, but nevertheless, it is and should be part of the overall question, how can we support our customer group of the doctors.

Reinhard Loose: Obviously it is something new, but nevertheless, it is and should be part of the overall question, how can we support our customer group of the doctors? Therefore, it's definitely not only a marketing tool, but it's, let's say, it's a support of our holistic way of consulting them. Finally, obviously, this company should earn money. Definitely it will not in the first 2, 3 years. As always, we see it as a startup. But our plans and our target is to see this company profitable.

Reinhard Loose: Obviously it is something new, but nevertheless, it is and should be part of the overall question, how can we support our customer group of the doctors? Therefore, it's definitely not only a marketing tool, but it's, let's say, it's a support of our holistic way of consulting them. Finally, obviously, this company should earn money. Definitely it will not in the first two, three years. As always, we see it as a startup. But our plans and our target is to see this company profitable.

Speaker #3: Therefore, it's definitely not only a marketing tool but it's, let's say, it's support of our holistic way of consulting them. Finally, obviously, this company should earn money.

Speaker #3: Definitely, it will not in the first two, three years. It's in, as as always, it's we see it as a startup. But it will be our plans and our target is to see this company profitable.

Speaker #4: Thank you.

Operator 2: Thank you.

Operator: Thank you.

Speaker #3: You're welcome.

Reinhard Loose: You are welcome.

Speaker #4: Yeah, I understand.

Speaker #2: Thank you very much. With that, we have answered all the questions. Thank you very much for your participation and I would like to hand over to your host, Pascal Lcher, for the closing remarks.

Operator 2: Thank you very much. With that, we have answered all the questions. Thank you very much for your participation. I would like to hand over to your host, Pascal Löcher, for the closing remarks.

Operator: Thank you very much. With that, we have answered all the questions. Thank you very much for your participation. I would like to hand over to your host, Pascal Löcher, for the closing remarks.

Speaker #1: Okay. If there are no further questions, I would like to thank you for taking part in our conference call. Of course, you can reach us if any further questions arise later.

Pascal Löcher: Okay. If there are no further questions, I would like to thank you for taking part in our conference call. Of course, you can reach us if any further questions arise later. I wish you a good afternoon. Thank you and goodbye.

Speaker #1: I wish you a good afternoon. Thank you and goodbye.

Reinhard Loose: Thank you. Bye-bye.