Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — FY2003 Earnings Presentation
20 slides from Invesco's earnings presentation, Feb 3, 2004
Slide 1: 2003 Year End Results
AMVESCAP Helping people worldwide build their financial security 2003 Year End Results Charles W. Brady, Executive Chairman Robert F. McCullough, Chief Financial Officer February 3, 2004
Slide 2: Forward-Looking Statement
Forward-Looking Statement Callers who access the call during the live transmission will be deemed to have solicited access to the call for the purposes of the UK Financial Services and Markets Act regime governing real-time financial promotion. The presentations that follow may include information t
Slide 3: Financial Review
AMVESCAP Financial Review
Slide 4: Group Profit & Loss Account
Group Profit & Loss Account Year Ended December 31, 2003 2002 Revenues £1,158,070 £1,345,263 Expenses: Operating (847,220) (978,338) Exceptional (84,943) (69,248) Goodwill amortization (148,982) (149,415) Operating profit 76,925 148,262 Investment income 7,740 6,561 Interest expense (48,270) (52,558
Slide 5: Group Profit & Loss Account (Three Months)
Group Profit & Loss Account Three Months Ended Dec 31, 2003 2002 Revenues £301,219 £291,099 Expenses: Operating (211,649) (220,273) Exceptional (22,849) (49,181) Goodwill amortization (37,049) (38,927) Operating profit 29,672 (17,282) Investment income 3,038 (905) Interest expense (10,417) (12,189)
Slide 6: EPS Comparisons
EPS Comparisons Full Year % 2003 2002 Change Earnings per share (before goodwill and exceptional items): -Basic 23.4p 27.5p -15% -Diluted 23.2p 27.2p -15% -Diluted per ADR at $1.78 $0.83 $0.97 -14% -Diluted per ADR at $1.61 $0.75 $0.88 -15% Earnings per share before goodwill: -Basic 16.4p 20.5p -20%
Slide 7: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2003 2003 Q4 Q3 % change Revenues £ 301,219 £ 304,257 (1.0%) Operating expenses 211,649 216,848 (2.4%) Operating profit 89,570 87,409 2.5% Operating margin 29.7% 28.7% 3.5% EBITDA 107,399 106,800 0.6% EPS - diluted 7.0p 6.6p 6.1% EBITDA per share - dilute
Slide 8: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2003 2003 2003 2003 Q1 Q2 Q3 Q4 Revenues £ 270,798 £ 281,796 £ 304,257 £ 301,219 Operating expenses 211,581 207,142 216,848 211,649 Operating profit 59,217 74,654 87,409 89,570 Operating margin 21.9% 26.5% 28.7% 29.7% EBITDA 77,820 94,596 106,800 107,399
Slide 9: Exceptional Items 2003
Exceptional Items 2003 £’000 2003 2002 Redundancy 31,054 44,544 US Retail reorganization 17,413 -- US Regulatory investigations 17,371 -- Lease costs 9,620 5,144 Acquisitions 2,326 -- Project costs & other 7,159 19,560 Total exceptional items 84,943 69,248 Total exceptional items net of tax 55,901 5
Slide 10: Operating Profit – 2003 V. 2002
Operating Profit – 2003 V. 2002 2003 2002 Change AIM US 182,711 244,922 (62,211) Canada 77,581 77,643 (62) 260,292 322,565 (62,273) INVESCO North America 49,043 50,527 (1,484) UK 29,423 31,063 (1,640) Europe/Asia 340 884 (544) 78,806 82,474 (3,668) Private Wealth/Retirement (3,262) (5,429) 2,167 Cor
Slide 11: Funds Under Management – Q4 2003
Funds Under Management – Q4 2003 in billions AIM INVESCO Total US Canada N. Amer. UK Europe/Asia PWM September 30, 2003 $345.2 $142.3 $26.4 $109.9 $35.0 $22.5 $9.1 Market gains 20.6 9.1 2.0 6.1 2.2 0.9 0.3 Net new (lost) business (1.8) (2.1) (0.1) 1.2 (0.2) (0.7) 0.1 Change in MMF - 0.2 - - - (0.2)
Slide 12: Funds Under Management – YTD
Funds Under Management – YTD in billions AIM INVESCO Total US Canada N. Amer. UK Europe/Asia PWM December 31, 2002 $332.6 $144.1 $22.0 $103.5 $34.0 $21.1 $7.9 Market gains/(loss) 45.4 20.3 3.2 12.8 6.0 2.2 0.9 Net new (lost) business (10.6) (6.2) - (0.8) (0.4) (2.8) (0.4) Change in MMF (10.7) (10.1)
Slide 13: Balance Sheet
Balance Sheet Dec 31, 2003 Dec 31, 2002 Fixed assets Goodwill £2,411,803 £2,542,306 Investments 230,567 248,408 Tangible assets 170,598 197,060 2,812,968 2,987,774 Currents assets Debtors 903,955 725,547 Investments 74,652 69,195 Cash 318,713 355,111 1,297,320 1,149,853 Current Liabilitites Current
Slide 14: Analysis Of Net Debt
Analysis Of Net Debt in thousands December 31, 2003 December 31, 2002 (Decrease)/Increase £ $ £ $ £ $ Senior notes ($700m) 393,258 700,000 434,783 700,000 (41,525) - Senior notes ($350m) 196,629 350,000 - - 196,629 350,000 Credit facility 130,127 231,627 149,916 241,364 (19,789) (9,737) Senior notes
Slide 15: Group Cash Flow
Group Cash Flow Year Ended Dec 31, 2003 Dec 31, 2002 Operating profit £76,925 £148,262 Amortization and depreciation 217,007 209,647 Change in debtors, creditors and other 20,337 68,609 Net cash inflow from operating activities 314,269 426,518 Interest paid, net of investment income (42,143) (41,558
Slide 16: Headcount
Headcount Dec 31, Sept 30, Dec 31, Change Change 2003 2003 2002 Dec-Dec Sept-Dec AIM US 2,368 2,491 2,857 (489) (123) Canada 922 901 918 4 21 3,290 3,392 3,775 (485) (102) INVESCO North America 878 859 817 61 19 UK 1,135 1,213 1,428 (293) (78) Europe/Asia 608 620 714 (106) (12) 2,621 2,692 2,959 (33
Slide 17: Average Shares Outstanding
Average Shares Outstanding in thousands Dec 31, Sept 30, Dec 31, 2003 2003 2002 Ordinary shares 768,538 768,642 771,692 Exchangeable shares 34,347 34,899 38,350 Shares outstanding 802,885 803,541 810,042 Shares reserved for: Options 7,486 2,987 9,476 Total shares 810,371 806,528 819,518 17
Slide 18: US GAAP Reconciliation (Profit)
US GAAP Reconciliation (Profit) in thousands Year Ended Dec 31, 2003 2002 Net profit under UK GAAP £ (17,281) £ 16,893 US GAAP adjustments: Acquisition accounting 141,880 137,790 Redundancy and reorganizations 30,085 11,961 Taxation (14,801) (5,198) Other (743) 420 Net income under US GAAP £139,140
Slide 19: US GAAP Reconciliation (Equity)
US GAAP Reconciliation (Equity) in thousands Dec 31, 2003 Dec 31, 2002 Shareholders' funds under UK GAAP £ 2,232,253 £ 2,283,488 US GAAP adjustments: Acquisition accounting 1,095,839 1,034,168 Redundancy and reorganizations 44,649 11,961 Treasury stock (184,922) (162,104) Dividends 52,914 52,656 Oth
Slide 20: 2003 Year End Results
AMVESCAP 2003 Year End Results