The global stock markets enjoyed a good start to 2019, with the indices on both sides of the Atlantic hitting new record levels at short intervals. Hopes for a soft outcome to the Brexit discussion, further progress in the US trade dispute with China and positive economic data all served to strengthen economic optimism. The prospect of a loose monetary policy, both by the Fed and the ECB, also contributed to the good development, while companies were largely able to impress with their reports. The stock markets suffered their first monthly loss in May. In particular the escalation in the trade dispute between China and the US, as well as weak economic data, increased worries regarding a global economic slowdown. Geopolitical stress factors, such as the Iran sanctions and the Middle East crisis, also had a negative impact.
Investors once again became more willing to take risks in the second half of the year and the stock markets then enjoyed a very strong recovery from their interim annual lows. Indeed, several of the leading indices set new records up to December. This was in part thanks to the US and China reaching an initial partial agreement, allowing planned customs duties to be averted. However, it was also due to the clarity regarding Brexit brought about by Boris Johnson's significant victory in the UK parliamentary elections. Germany's leading index, the DAX, promptly rose to a new annual high of 13,425 points in a year-end rally following this and thereby also set its sights on the all-time high of 13,596 points, which was recorded in January 2018. At 28,643 points, the MDAX was also able to reach a new all-time high. Yet, with gains of 31.6%, the SDAX established itself as the frontrunner among the German indices. It was followed by the DAX and TecDAX, which recorded gains of 25.6% and 23.1%, respectively.
The US stock markets also set new records. The Nasdaq Composite technology exchange proved the clear frontrunner on Wall Street with gains of 35.2%. The S&P 500 Index gained 28.9%, while the Dow Jones Index was up 22.3%. Oil prices also benefited from the good framework conditions and rose by 10%. The single European currency recovered from its previous weak phase and climbed to US$ 1.1212 at the end of December.
The MLP SE share enjoyed encouraging development in the 2019 stock market year. Bolstered by upbeat sentiment on the financial markets, the start of trading in the new year was positive. The global stock markets recorded their first monthly loss in May. This also affected the MLP share. Payment of the dividends further impacted the share price. At € 3.86, the share hit its lowest price of the year in XETRA trading on May 31, surrendering the gains it had recorded in previous months. Supported by positive business results for the first half of the year, however, the share enjoyed a significant recovery to € 4.53 by the end of August. Set against the background of solid business figures for the third quarter and continued optimism on the capital markets, the share was able to break through the € 5.00 barrier again for the first time at the start of December. This upwards trend continued in December and the share reached its highest price in daily trading of € 5.69 on December 30, 2019. It then ended 2019 at a price of € 5.60.
The MLP share therefore achieved price performance of 28.9% in the 2019 stock market year. As such, market capitalisation increased to € 612.3 million as of December 31, 2019.
You can find further information on the MLP share in the "MLP Share" section of our Investor Relations page at www.mlp-se.com.
Share buyback
As announced during the 2017 Annual General Meeting, MLP established another share-based participation programme at the end of the financial year 2018 for MLP office managers and MLP consultants with the aim of strengthening the collaborative component in the MLP business model. In the period from December 12, 2018 to March 1, 2019, a total of 536,209 shares were bought back at an average share price of € 4.3525. 539,947 shares were then issued to the beneficiaries, meaning that MLP SE still held 386 shares in its own portfolio as of December 31, 2019.
MLP will continue its consistent dividend policy for the financial year 2019. As announced, the dividend proposed by the Executive Board for the financial year 2019 will once again target a distribution rate of between 50% and 70%. In concrete terms, the Executive Board and Supervisory Board will propose a dividend of € 0.21 per share at the Annual General Meeting on June 25, 2020. This corresponds to a distribution rate of around 62% of operating net profit.
| 2019 | 2018 | 2017 | 2016 | 2015 | ||
| Shares in circulation at the end of the year | in units | 109,334,686 | 109,334,686 | 109,334,686 | 109,334,686 | 109,334,686 |
| Share price at the beginning of the year | in € | 4.35 | 5.59 | 4.11 | 3.67 | 3.71 |
| Share price at the end of the year | in € | 5.60 | 4.40 | 5.63 | 4.18 | 3.67 |
| Share price high | in € | 5.69 | 6.06 | 6.47 | 4.25 | 4.26 |
| Share price low | in € | 3.86 | 4.11 | 4.11 | 2.57 | 3.48 |
| Market capitalisation at the end of the year | in € million | 612.3 | 481.1 | 615.6 | 456.5 | 401.3 |
| Average daily turnover of shares | in units | 46,854 | 98,410 | 171,210 | 93,390 | 80,996 |
| Dividend per share | in € | 0.21* | 0.20 | 0.20 | 0.08 | 0.12 |
| Total dividend | in € million | 23.0* | 21.9 | 21.9 | 8.7 | 13.1 |
| Return on dividend | in % | 3.8* | 4.5 | 3.6 | 1.9 | 3.3 |
| Earnings per share | in € | 0.34 | 0.32 | 0.25 | 0.13 | 0.17 |
| Diluted earnings per share | in € | 0.34 | 0.32 | 0.25 | 0.13 | 0.17 |
Changes to the shareholder structure
HanseMerkur Krankenversicherung AG increased its stake from 3.02% to 5.10% in the first half of 2019 (announcement from May 2, 2019). In the second half of the year, Universal-Investment-Gesellschaft mbH reported a stake of 9.19% (notification from July 4, 2019). On the same day, the stake held by Internationale Kapitalanlagegesellschaft mbH was reduced from 5.03% (notification from July 3, 2019) to zero. Responsibility for managing the special assets was transferred in this connection. In addition, Barmenia increased its stakes in our company from 6.67% to 7.77% (notification from September 26, 2019). The share of voting rights held by other shareholders remained virtually unchanged in the reporting date. The Lautenschläger family remains the largest single shareholder with a 29.16% total share of the voting rights.
The free float at the end of 2019 was 42.43%, as defined by the German stock exchange. The following chart provides an overview of the major shareholders of MLP (with a share of more than 5%).
The goal of our investor relations activities is to establish a continuous and open dialogue with our shareholders, potential investors and the capital market. We are keen to establish and build on trust among investors and support the market in assessing the value potential of our company. To this end, we provide continuous, timely and transparent information on relevant events and incorporate feedback received from capital market players. We engage in active exchange with both private and institutional investors at regular capital market events, such as roadshows, capital market conferences and our Annual General Meeting. Alongside direct contact, financial reporting is a key basis for our communication. The Annual Report plays a particularly important part here, as it provides comprehensive and transparent information on all aspects of the company.
We also provide a special investor relations newsletter service, whereby anyone interested can sign up to receive e-mails on important events. Anyone interested can also keep up to date with news from the company and the sector via twitter (http://twitter.com/MLP_SE). You can find the investor relations section at: mlp-se.com/investors. Please feel free to contact us if you prefer to talk to someone in person.
In the following table, we provide you with an overview of a selection of important key figures.
| 2019 | 2018 | ||
| Equity ratio | in % | 15.6 | 17.5 |
| Return on equity | in % | 8.7 | 8.5 |
| Cora capital ratio | in % | 19.2 | 19.6 |
| Net liquidity | in € million | 174.0 | 225.0 |
| Market capitalisation at the end of the year | in € million | 612.3 | 481.1 |
| Total revenue | in € million | 708.8 | 666.0 |
| EBIT | in € million | 47.1 | 46.4 |
