Invesco Ltd · NYSE:IVZ

Invesco — Amvescap — FY1998 Earnings Presentation

16 slides from Invesco's earnings presentation, 1999

  1. Slide 1: 1998 Year End Results

    1998 YEAR END RESULTS Charles W. Brady Robert F. McCullough

  2. Slide 2: Highlights

    HIGHLIGHTS • Record financial results • Growth in activities of each operating unit • Completion of GT Global acquisition – Integration of businesses on schedule and budget • Investment performance and client service • Continued implementation of strategy • Y2K preparations and Euro conversion 2

  3. Slide 3: 1998 Financial Highlights

    1998 FINANCIAL HIGHLIGHTS • Revenues of £802.2m • Pre-tax profits of £231.3m • EBITDA of £309.5m, up £96.0 m • Basic EPS of 26.0p ($2.18), up 14.5% • Fully diluted EPS of 24.3p ($2.04), up 16.8% • Funds under management of $275.4bn (£163.9bn) • Dividends per share of 8.0p, up 14.3% 3

  4. Slide 4: Financial Review

    FINANCIAL REVIEW Robert F. McCullough

  5. Slide 5: Group Profit & Loss Account

    GROUP PROFIT & LOSS ACCOUNT Year Ended 31 December 1998 Ordinary Exceptional thousands Activities item Total 1997 Revenues £ 802,172 £ - £ 802,172 £ 530,659 Operating expenses (544,856) (48,600) (593,456) (344,573) 257,316 (48,600) 208,716 186,086 Goodwill amortisation (21,221) - (21,221) - Operatin

  6. Slide 6: Segmental Analysis of Operating Profits

    SEGMENTAL ANALYSIS OF OPERATING PROFITS £ thousand 1998 1997 Incr/(Decr) Managed Products £ 198,374 £ 160,447 £ 37,927 U.S. Institutional 55,194 45,664 9,530 INVESCO Global 31,727 7,260 24,467 Retirement and Benefit Plan Services (1,126) (6,703) 5,577 Corporate (26,853) (20,582) (6,271) £ 257,316 £

  7. Slide 7: Segmental Analysis of 1998 Results

    SEGMENTAL ANALYSIS OF 1998 RESULTS £ thousand Revenues Expenses Oper. Profit Managed Products £ 488,936 £ (290,562) £ 198,374 U.S. Institutional 143,221 (88,027) 55,194 INVESCO Global 150,511 (118,784) 31,727 Retirement and Benefit Plan Services 19,504 (20,630) (1,126) Corporate - (26,853) (26,853)

  8. Slide 8: Effective Tax Rate

    EFFECTIVE TAX RATE thousands Ordinary Exceptional Activities Item Total Profit before taxation £ 210,078 £ (48,600) £ 161,478 Add: Goodwill amort. 21,221 - 21,221 231,299 (48,600) 182,699 Taxation (75,173) 7,800 (67,373) £ 156,126 £ (40,800) £ 115,326 Effective tax rate 32.5% 16.0% 37.0% 8

  9. Slide 9: Earnings Per Share

    EARNINGS PER SHARE 1998 Numbers of Profit Shares Per Share £’000 ’000 Amount Basic earnings per share 156,126 601,234 26.0p Issuance of options - 33,145 Conversion of loan note 521 8,977 Diluted earnings per share 156,647 643,356 24.3p 9

  10. Slide 10: Funds Under Management

    FUNDS UNDER MANAGEMENT billion Managed Products U.S. INVESCO Total AIM INVESCO Institutional Global RBPS 31 December, 1997 $192.2 $83.4 $18.0 $67.5 $18.4 $4.9 Market gains 26.2 11.5 3.3 9.6 1.2 0.6 GT Global acquisition 46.8 9.8 - 19.6 17.4 - Net new (lost) business 4.6 2.7 1.6 (3.1) 2.7 0.7 Change

  11. Slide 11: Balance Sheet

    BALANCE SHEET thousands 31 Dec 1998 31 Dec 1997 Fixed Assets Tangible assets £ 88,781 £ 46,832 Investments 133,508 86,626 Goodwill 708,644 - 930,933 133,458 Current Assets Debtors: amounts falling due within one year 543,064 190,155 Investments 31,676 26,554 Cash at bank and in hand 119,651 70,681 6

  12. Slide 12: Dividend Analysis

    DIVIDEND ANALYSIS 1994 1995 1996 1997 1998 Dividend per share Interim 1.25p 1.75p 2.00p 2.50p 3.00p Final 3.50p 4.00p 4.00p 4.50p 5.00p Total 4.75p 5.75p 6.00p 7.00p 8.00p Dividend paid (£000) 11,417 13,913 16,952 39,462 50,594 % increase per share 36% 21% 4% 17% 14% dividend paid 39% 22% 22% 133% 2

  13. Slide 13: Headcount

    HEADCOUNT 31/12/98 31/12/97 Managed Products 2,770 2,222 U.S. Institutional 609 356 INVESCO Global 1,140 511 Retirement and Benefit Plan Services 315 196 Corporate 51 23 4,885 3,308 13

  14. Slide 14: US GAAP Reconciliation (Profit)

    US GAAP RECONCILIATION (PROFIT) thousands (except EPS) Year Ended 31 December, 1998 1997 Net profit under UK GAAP £94,105 £ 117,014 US GAAP Adjustments: Acquisition accounting differences (36,091) (44,496) Taxation (13,613) (4,647) Other (150) 1,082 Net income under US GAAP £44,251 £ 68,953 14

  15. Slide 15: US GAAP Reconciliation (Equity)

    US GAAP RECONCILIATION (EQUITY) 31 Dec, 1998 31 Dec, 1997 Shareholders' funds under UK GAAP £ 339,277 £ (21,462) US GAAP Adjustments: Acquisition accounting differences 1,022,254 1,079,307 Deferred taxation (1,027) (4,764) Treasury stock (131,857) (82,138) Employee stock ownership plans (2,309) (5,7

  16. Slide 16: Global Investment Services

    AW AMVESCAP Global Investment Services

Amvescap — FY1998 Earnings Presentation on 6ix