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Earnings position, net worth and financial position

Earnings position

With the initiation, sale and management of investment products for wealthy private customers, the MPC Capital Group generated sales of TEUR 191,316. This equates to a decline of 20% compared with last year's figure of TEUR 240,227. A detailed breakdown of the sales and profit contribution can be found in the development of gross income. The share of sales achieved outside Germany increased from 9.6% to 11.3% and was principally generated in Austria and the Netherlands.

Also pleasing is the further increase in the share of recurring sales (sales from fund management), which in the 2005 financial year increased from 5.6% to 8.7%.

The cost of purchased services principally relates to commission payments for placing equity by institutional and independent sales partners. The decrease of 21% to TEUR 96,536 resulted almost entirely from the lower placement volume. Gross income fell accordingly from TEUR 118,260 by 20% to TEUR 94,779

Personnel costs fell in the reporting period by 3% from TEUR 25,074 to TEUR 24,397. Due to the smaller placement volume and net income for the year, the costs of the increase in personnel from an average of 182 to 215 employees was overcompensated by the decrease in variable remuneration components. The personnel expenses/sales ratio increased from 10% to 13%.

Other operating expenses also take into account the expenditure for the development and marketing of new and existing products and product lines. In 2005, expenses amounted to TEUR 22,998, 7% lower than the previous year's total of TEUR 24,692.

At TEUR 57,756, the operating result (EBIT) at the balance sheet date was 20% lower than the previous year's figure of TEUR 72,008 at the 2004 balance sheet date. The margin expressed as a percentage of consolidated sales was unchanged at 30%.

The tax rate as at December 31, 2005 was 28% and thus slightly less than the previous year's figure of 30%. This is especially due to refunds of overpaid tax and the lowering of the corporate tax rate in Austria.

At TEUR 43,477, consolidated net income for the year was 17% less than last year's figure of TEUR 52,293. However, the return expressed as a percentage of consolidated sales increased from 22% to 23%.

Financial position

In the successful 2005 financial year, MPC Capital once again generated a positive cash flow from the ongoing operating activities. At the end of the period, this was TEUR 47,208 and thus down by 41% on the TEUR 81,246 of the previous year.

Owing to the company's operating activities in the MPC Capital Group, some investments in fixed assets were made in the financial year. Investments of this kind are usually limited to office furniture and equipment. Only small investments in fixed assets are planned for the future.

Cash flows from investment activity in the reporting period amounted to TEUR 3,210 (after TEUR 277 in 2004) and were primarily the result of investments in financial and tangible assets.

In 2005, the shareholder-friendly dividend policy, which resulted in the dividend for the 2004 financial year being increased to EUR 4.00 per share, led to a cash outflow from financing activities of TEUR 42,400. In 2004, the dividend was EUR 3.00 and the cash outflow from financing activities was TEUR 31,800. In the reporting year, the issue proceeds from the stock market flotation in 2000 were mainly used for short-term prefinancing of fund investments or were invested in the short term on the money market.

At the balance sheet date, the company posted an increase in liquid funds of
TEUR 1,598 and had financial resources of TEUR 105,714.

Net worth position

The MPC Capital Group continues to have a very good financial situation. At TEUR 187,189, the Group's balance sheet total as at December 31, 2005 was 6% higher than in the previous year (TEUR 176,779). The increase on the assets side is primarily due to the increase in liquid assets as at the balance sheet date, trade receivables and financial investments. These are balanced on the liabilities side by equity and by lower provisions and higher current liabilities.

At the end of 2005, the MPC Capital Group had equity of TEUR 136,328. This represents an increase of 1% compared to the previous year's value of TEUR 135,251. This is primarily attributable to the increase in retained earnings for the year. The equity ratio in the MPC Capital Group fell from 77% to 73%. The return on equity amounted to 32% due to the reduced net income for the year compared with 39% in the comparative period of 2004.

Provisions fell from TEUR 27,195 to TEUR 22,295 and correspond to 12% of total assets. They generally fall due within a year and contain provisions for taxes, income and earnings, for personnel as well as legal and consulting provisions


Distribution of EUR 4.00 per share
MPC Capital continued its shareholder-friendly dividend policy throughout 2005. With a distribution rate of 98%, MPC Capital directly involves the shareholders in the success of the company. The Supervisory Board and Management Board will propose a dividend distribution of EUR 4.00 per share to the Annual General Meeting on May 4, 2006. Subject to the approval of the Annual General Meeting, the dividend will be paid on May 5, 2006.

On the basis of the year-end price (XETRA) of EUR 65.80, a dividend yield of 6.1% is calculated for the 2005 financial year.