SEI Investments Company · NASDAQ:SEIC
SEI Investments — Investor Presentation (October 2004)
24 slides from SEI Investments's investor presentation, Oct 19, 2004
Slide 1: Investor Presentation, October 19, 2004
October 19, 2004 As of September 30, 2004 This presentation may include “forward looking statements” and discussions about future operations, strategies and financial results. Forward - looking statements are based upon estimates and assumptions that involve risks and uncertainties, many of which ar
Slide 2: SEI Investments
SEI INVESTMENTS SEI is a leading global provider of outsourced investment business solutions. Since 1968, our innovative solutions have helped businesses: financial institutions, corporations, and financial advisors - create and manage wealth. As of September 30, 2004, SEI administers $275 billion i
Slide 3: SEI Overview
SEI Overview Outsourcing Core Offerings n Investment processing platforms n Investment processing outsourcing n Asset management Investments and Technology Business Solutions IINVESTOR PRESENTATION October 19, 2004 3
Slide 4: A History of Innovation
SEI A History of Innovation Technology + Investments = Integrated Solutions Sol utions 2000’s - Financial Wellness - STP - Global expansion 1990’s - Trust operations outsourcing - Asset management 1980’s - Total business solutions for - IBM trust system Advisors & Enterprises 1970’s - Liquidity fund
Slide 5: Markets and Solutions
SEI Markets and Solutions Private Investment Enterprises Money New Banking Advisors Managers Businesses & Trust Advice Asset Management Administration Investment Processing Percent of 2003 Revenues 49% 25% 10% 8% 8% IINVESTOR PRESENTATION October 19, 2004 5
Slide 6: A Record of Growth: Revenues & After Tax Profits 1993-2003
SEI: A Record of Growth Revenues & After Tax Profits 1993-2003 $658 $630 $636 $175 $599 $600 $150 $456 $141 $143 $500 $125 $125 $400 $366 $99 $100 $293 $300 $248 $75 $226 $67 $205 $185 $200 Revenue $50 $43 After Tax $100 Profits $25 $27 $18 $21 $23 $13 $0 $0 93 94 95 96 97 98 99 00 01 02 03 IINVESTO
Slide 7: Fundamental Operating Strengths
SEI Fundamental Operating Strengths Long-term client relationships Recurring revenue n Strong operating cash flow n Operating cash flow: $178 million (2003)* Business leverage and economies of scale Stock repurchases n Stock repurchases (YTD September 2004): – 3.1 million shares @ $97.3 million Inve
Slide 8: Investment Advisors: Markets & Solutions
Investment Advisors: Markets & Solutions Markets n Investment advisors serving high net-worth investors n Registered investment advisors, financial planners, high-end life insurance producers and CPAs n Market size: $8.1 trillion* Solutions n Advice, Asset Management, Investment Processing *SOURCE:
Slide 9: Investment Advisors: Positioning and Strategy
Investment Advisors: Positioning and Strategy Positioning n Financial wellness platform for investors and advisors ü For high net-worth investor: complete life-based wealth advice and solutions for baby boomers ü For advisor: complete business platform for life-based advisory business Strategy n Est
Slide 10: Investment Advisors: Growth Drivers
Investment Advisors: Growth Drivers Affluent investor needs n Independent wealth advice based on life goals n Fully integrated “best of breed” wealth solutions Investment advisor needs n Business growth n Complete scaleable platform for operating a life based advisory business n Succession plan SEI’
Slide 11: Private Banking and Trust: Markets & Clients
Private Banking and Trust: Markets & Clients Bank Markets n National banks n Regional & Community banks Solutions n Investment processing (76% of revenue)* n Mutual fund services (12% of revenue)* n Asset management (12% of revenue)* •SOURCE: SEI Investments Q3 Earnings Release – October 19, 2004 II
Slide 12: Private Banking and Trust: Positioning and Strategy
Private Banking and Trust: Positioning and Strategy Positioning n Market leader n Outsourcer of business services for investment processing and asset management n Financial wellness for banks and their clients Strategy n Continue platform development for straight-through processing, including electr
Slide 13: Private Banking & Trust: Growth Drivers
Private Banking & Trust: Growth Drivers n Industry consolidation n Exit of major competitor n Increased acceptance of outsourcing solutions n Evolution to new business models IINVESTOR PRESENTATION October 19, 2004 13
Slide 14: Enterprises: Markets and Clients
Enterprises: Markets and Clients Markets n U.S. retirement plan sponsors n Endowments & Foundations n Market Size: $8.2 trillion* Solutions n Advice n Asset management n Processing and administration * SOURCE: Federal Reserve Board IINVESTOR PRESENTATION October 19, 2004 14
Slide 15: Enterprises: Positioning and Strategy
Enterprises: Positioning and Strategy Positioning n Holistic view of enterprise n Single source accountability for all plan design, funding, investment and administration needs n Manager of Managers; not a traditional money manager or consultant Strategy n Develop additional advice capabilities, fun
Slide 16: Enterprises: Growth Drivers
Enterprises: Growth Drivers Corporation Needs n Under-funded retirement plans, detrimental to corporate health n Retirement plan sponsors seek solutions integrating pension finance and corporate finance n Streamlined plan administration and lower costs Endowment & Foundation Needs n Increased pressu
Slide 17: Money Managers: Markets and Clients
Money Managers: Markets and Clients Markets n U.S. investment managers n Alternative investment managers worldwide n Market size: $20.1 trillion* Solutions n Investment processing n Fund administration n Fund accounting Source for Asset Values: Deutsche Banc Alex Brown – April 2001 IINVESTOR PRESENT
Slide 18: Money Managers: Positioning and Strategy
Money Managers: Positioning and Strategy Positioning n World class administrator for alternative investments n Advanced processing platform for SMAs n Integrated “best of breed” platform for mutual funds Strategy n Grow separately managed account solution n Integrate front office advice tools n Laun
Slide 19: Money Managers: Growth Drivers
Money Managers: Growth Drivers n Regulatory scrutiny of investment management markets n Growth of alternative investments n Growth of separately managed accounts n Demand for complete outsourcing solutions IINVESTOR PRESENTATION October 19, 2004 19
Slide 20: New Businesses: Global Summary
New Businesses: Global Summary Strategies and Focus n Focus on market segments in select regions n Evolve U.S. strategies to global markets n Utilize the investments in new platforms Accomplishments n AUM $13.7 b (includes Global and other new businesses)* •SOURCE: SEI Investments Q3 Earnings Releas
Slide 21: SEI Global Enterprise: Towards Enterprise Solution
SEI Global Enterprise Towards Enterprise Solution Country Entry Distribution Clients Canada 1995 Direct 25 South Africa 1995 Direct 15 United 1999 Direct and 36 Kingdom Partnerships Germany 2004 Partnership 1 Benelux 2004 Direct Hong Kong Late 2004 Direct IINVESTOR PRESENTATION October 19, 2004 21
Slide 22: SEI Global Advisors: Towards Life & Wealth Solution
SEI Global Advisors Towards Life & Wealth Solution Country Entry Distribution Canada 1996 IFA’s South Africa 1995 Distribution Partnerships Italy 1996 Distribution Partnerships UK 2001 IFA’s France 2004 Family Office Hong Kong Late 2004 IFA’s IINVESTOR PRESENTATION October 19, 2004 22
Slide 23: SEI: Summary
SEI: Summary n Operations in large and diverse markets n Leveraged operating model n History of growth and innovation n Compelling business solutions n Large growth opportunities IINVESTOR PRESENTATION October 19, 2004 23
Slide 24: IINVESTOR PRESENTATION October 19, 2004
IINVESTOR PRESENTATION October 19, 2004 24
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