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Foreword by the Management Board

Dear shareholders,
friends and partners of our company,

2005 was a very successful year for your company. We have once again placed equity of almost EUR 1 billion and maintained our leadership of the market in Germany. The share price increased by 19% in the course of the year and we are presenting earnings per share which enable us to distribute a dividend of EUR 4.00. These are the bare figures.

For us, 2005 will go down as the year of new developments in the company's eleven year history. Never before have we simultaneously brought three new products to market maturity in one year. The Real Estate Opportunity Fund, the Fortrust Note and the British life insurance fund are an expression of the ability and willingness to innovate of the entire MPC Capital team. The highly motivated interaction between all areas, from product development and design through to marketing, sales and investor support, has made the new products an impressive success: in the first year alone they are contributing 20% of the total placement volume.

To ensure the sustainability of our business model, strict compliance with the stringent quality criteria is indispensable in addition to a widely diversified range of products. This applies equally to new investment designs as well as the traditional funds model. With the stock market flotation of other issuing houses, discussion has arisen regarding the compatibility of a philosophy regarding quality with the expectations of the capital market. In our Guest Contribution, Professor Alexander Deichsel of the Geneva-based Institut für Markentechnik explains why in this connection there is no alternative to quality in terms of a long-term and commercially operating management.

Our passion is the design, initiation and support of high-quality and successful long-term investments for our investors. Since 1995, around 120,000 customers have placed their trust in the MPC Capital brand. They have invested a total of EUR 4.8 billion in 224 funds issued by our company. With an investment volume of over EUR 12 billion, 134 ships, 277 properties, almost 10,000 life insurance policies and investments in companies and umbrella fund investments were financed.

We see our task as an issuing house as far more than just placing fund equity. We actively observe the markets in order, on the one hand, to work hard for new opportunities, but also to use each attractive market environment for those investing in our existing funds. In this way, the shareholders of different funds took up our recommendation to dispose ships and real estate. The ship investments, with an average holding period of something over six years, generated yields of 15.7% p.a. after tax. In the area of real estate, the average time to maturity of the funds was at least five years. The yield after tax was 11.1% p.a.

We recognise the values of reliability, partnership, enthusiasm, entrepreneurship and professionalism. Since December 2005, we have also been applying these to the MPC Capital Foundation. The objective of the foundation is to enable men and women - principally adolescents - to have access to education and training. A first project is aimed at young migrants and Germans with the objective of promoting skills instead of focusing on deficiencies. With the MPC Capital Foundation, our previous social commitment will be targeted towards specific goals and continued in the long term.

In the fifth year since our stock market flotation, the share price of MPC Capital achieved a new all-time high of EUR 69.05. The share concluded the stock market year at EUR 65.80 and posted a performance of + 19% compared with last year. The earnings per share of EUR 4.10 and our first-class financial foundation with an equity ratio of 73% allow us to once again distribute an attractive dividend to our shareholders. Together with the Supervisory Board, we are proposing to the Annual General Meeting on May 4, 2006 the distribution of a dividend of EUR 4.00 per share for the 2005 financial year. As at December 31, 2005 therefore, the dividend yield was 6.1%.

The success story of MPC Capital would not be possible without the expert knowledge, extraordinary commitment and steadfast efforts of our employees. It is to them therefore that our recognition goes for their services in the last financial year. We would also like to express our thanks to our numerous product, financial and sales partners for their professional and inspiring cooperation. And, dear shareholders, we would like to thank you for your confidence in our work and for your loyalty.

With this year's annual report we would like to invite you to examine in greater detail the success of the company in 2005, to look behind the key data, share prices and investments, and to discover what sets MPC Capital apart. We are sure that you will discover some surprising facts, and we hope you enjoy your journey of discovery.


Hamburg, February 2006
The Management Board

Dr. Axel Schroeder    Ulrich Oldehaver    Ulf Holländer
Chairman