Impax Asset Management Group plc · LSE:IPX
Impax Asset Management — Shareholder Meeting (February 2013)
30 slides from Impax Asset Management's shareholder meeting presentation, Feb 13, 2013
Slide 1: Impax Asset Management Group plc Annual General Meeting
Impax Asset Management Group plc Annual General Meeting Financial Year Ending 30 September 2012 13 February 2013
Slide 2: Impax is a leading investment manager focused on resource scarcity
Impax Asset Management is a leading investment manager dedicated to investing in the opportunities created by the scarcity of natural resources and the growing demand for cleaner, more efficient products and services, through both listed and private equity strategies. 2
Slide 3: Backdrop to Investment Opportunities in Resource Efficiency
Backdrop to Investment Opportunities in Resource Efficiency MGI Commodity Price Index (years 1999-2001 = 100) 3 Source: McKinsey & Company report, “Resource Revolution: Meeting the world’s energy, materials, food and water needs”, November 2011, p5
Slide 4: The Investment Opportunity – Energy
The Investment Opportunity – Energy LEDs rapidly gaining market share LEDs superior in both efficiency and lifetime % Conventional light sources LEDs Efficiency 15-30 100-150 (lm/watt) Lifetime 1k 20k-50k (hours) 4 Source: Deutsche Bank Global Markets Research, “Making Light Work” report, 5 Septembe
Slide 5: The Investment Opportunity – Water
The Investment Opportunity – Water People living in areas of severe water stress Projected cumulative infrastructure spending, (billions) 2005-2030 2.5 2.0 Power $9.0tn Water 1.5 $22.6tn 1.0 0.5 Road and Rail $7.8tn 0.0 2005 2030 2005 2030 2005 2030 Air/Seaports OECD BRIC ROW $1.6tn Source: Booz All
Slide 6: The Investment Opportunity – Materials
The Investment Opportunity – Materials Replenishing reserves of materials is increasingly difficult and expensive 6 Source: McKinsey & Company: “Resource Revolution”, November 2011, p48
Slide 7: The Investment Opportunity – Food & Agriculture
The Investment Opportunity – Food & Agriculture Global population Per capita Total food production (billions) consumption (kcal) (rebased) 2012 7 2012 2,770* 100 2050 2050 3,070 170 9 Source: “World Agriculture Towards 2030/2050” 2012 Revision, Food and Agriculture Organization of the United Nations
Slide 8: Investor Responses to Resource Scarcity
Investor Responses to Resource Scarcity Response Examples • Commodities • Unconventional oil Supply Expansion • Shale gas • Renewables • Desalination • Energy efficiency • Water treatment Efficiency Solutions • Leak detection and repair • Waste recycling 8
Slide 9: Investor Appetite
Investor Appetite ftom > globaleconomy > Welcome ag US Economy NS F CalSTRS Marks Success in Sustainability Proposals mae) Gh PSE CI January 30, 20195:10 pm CalSTRS submitted five proposals on environmental matters this year. US pension fund eyes selling oil holdings Three other proposals were withd
Slide 10: Environmental Markets Resource Efficiency
Environmental Markets Resource Efficiency Energy Water Energy Efficiency Alternative Energy Water Infrastructure Pollution Control - Power Network - Developers and IPPs & Technologies - Pollution Control Solutions - Industrials - Solar - Infrastructure - Testing & Gas Sensing - Buildings - Wind - Tr
Slide 11: Underappreciated Investment Opportunity in Resource Efficiency
Underappreciated Investment Opportunity in Resource Efficiency Representative Growth Rate* Asset Allocation Commodities 5% 1.7% Other 15% Resource Supply Real Estate 5% Commodities 5% "Resource Supply" Equities 1.5% 5.9% Equities "Resource Optimization" “Resource 0.5% 40% 6.8% EquitiesEquities Optim
Slide 12: Our Business Model
Our Business Model Focused & Scalable Team • Attractive investment themes • 56 staff, 28 investment professionals • High capacity strategies • Stable • Proven rigorous investment process • Significant staff share ownership Distribution Balance Sheet • In-house and third party • Shareholders’ equity
Slide 13: Our Markets' Outperformance over Ten Years
Our Markets’ Outperformance over Ten Years 400 FTSE Environmental Opportunities All Share 350 MSCI World 300 250 200 150 100 50 13 Source: FactSet, WM Reuters. FTSE index is total return, MSCI index is net total return. Data as at 31 January 2013 in GBP.
Slide 14: IEM – Strong 10 Year NAV Performance vs. MSCI World Index
IEM – Strong 10 Year NAV Performance vs. MSCI World Index 400 IEM plc NAV Return 350 FTSE ET50 MSCI World 300 250 200 150 100 Outperformance No material Under- Recovery? 50 underperformance performance 0 Source: FactSet, WM Reuters. Data in GBP as at 31 January 2013, performance data is for undilute
Slide 15: Early Signs of Outperformance – Rolling Return of IEM NAV vs. MSCI World
Early Signs of Outperformance 15 – Annual Rolling Return of IEM NAV vs. MSCI World 10 5 Relative to MSCI % 0 -5 -10 -15 15 Source: FactSet, WM Reuters. As at 31 December 2012, in GBP, based on Impax Environmental Markets plc.
Slide 16: Assets Under Management (£m)
Assets Under Management (£m) 30-Sep-12 1,828 Market Performance movement 68 In-flows 143 Out-flows (279) 30-Sep-11 1,896 16 Source: Impax Asset Management, as at 30 September 2012.
Slide 17: Financial Highlights
Financial Highlights Revenue (£m) Operating earnings (£m) Operating margin % 2012 18.6 2012 4.6 2012 24.5 2011 20.9 2011 6.2 2011 29.8 17 Source: Impax Asset Management, as at 30 September 2012.
Slide 18: Financial Highlights – Profit Before Tax
Financial Highlights – Profit Before Tax 2011 £m 2012 £m 6.2 Operating profit 4.6 Share based incentive (5.4) (8.7) scheme charges Other non- 0.9 (0.6) operating charges Profit/(loss) (4.7) 1.7 before tax 18 Source: Impax Asset Management, as at 30 September 2012.
Slide 19: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet Investments (£m) Cash reserves (£m) Share buybacks (m) 2012 6.4 2012 19.3 2012 4.7 2011 4.8 2011 20.0 2011 1.2 19 Source: Impax Asset Management, as at 30 September 2012.
Slide 20: Commercial Highlights
Commercial Highlights US Listed Equity Private Equity Industry Recognition = Current = Realised 20
Slide 21: Food & Agriculture
Food & Agriculture Michael Landymore Simon Higgo Director, Investment Manager, Listed Equities Listed Equities Industry experience: Industry experience: 32 years 22 years 21
Slide 22: Global Food & Agriculture Fund: Universe overlap with Environmental Markets
Global Food & Agriculture Fund: Universe “overlap” with Environmental Markets 70% Env. Markets Universe 60% Food & Agri Universe 50% 40% 30% 20% 10% 0% 22 Source: Impax Asset Management, as at 31 December 2012.
Slide 23: 5 Year Rolling Information Ratio vs. MSCI World
Combining Food and Agriculture Improves Risk Adjusted Returns 3 – Food 5 Year Rolling Information Ratio vs. MSCI World – Agriculture 2 – Combined Universe 1 0 -1 -2 23 Source: FactSet, VIPER Analytics as at 31 December 2012.
Slide 24: Our US Progress & Investment
Our US Progress & Investment David Richardson New York • New York office • Second senior US hire • Fund for US investors Managing Director • US PR agency Washington US Institutional D.C Business Industry experience: 29 years 24
Slide 25: Private Equity Infrastructure Update
Private Equity Infrastructure Update • 9 sites under construction – 88MW in France, 16MW to commence in Germany • Deals in 2012 Nov: Gamesa wind farm acquisition, 8MW, France Apr: EPURON wind farm acquisition, 28MW, Germany Jan: Scatec solar sale, 9MW, Italy St Riquier and Chaude Vallée wind farms,
Slide 26: Distribution Strategy
Distribution Strategy 746 UK/Ireland 822 626 Other Europe 599 58 Asia-Pacific 64 36 North America 19 362 Private Equity (Principally 392 Europe) AUM 30/09/11 AUM 30/09/12 Total £1,895m Total £1,828m 26
Slide 27: The Team – as at 31 December 2012
The Team – as at 31 December 2012 60 56 50 18 40 10 30 20 13 10 15 0 Listed Equity Private Distribution Support Total Equity 27
Slide 28: Media
Media Press Social Media Broadcast 28
Slide 29: Outlook
Outlook • Attractive prospects for target markets to sustain “superior growth” • Active investment management ideal for exploiting inefficient prices • Impax “platform” well positioned for further expansion • Scope for increase in operating margin 29
Slide 30: Disclaimer
Disclaimer This document has been prepared by Impax Asset Management Group plc and approved by Impax Asset Management Limited (Impax, authorized and regulated by the Financial Services Authority). The information and any opinions contained in this document have been compiled in good faith, but no re
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