Polar Capital Holdings Plc · LSE:POLR
Polar Capital — H1 2011 Earnings Presentation
20 slides from Polar Capital's earnings presentation, December 2010
Slide 1: Polar Capital Holdings Plc 2010 Interim Results
POLAR CAPITAL HOLDINGS PLC 2010 Interim Results Tim Woolley (CEO) John Mansell (COO) December 2010
Slide 2: Table of Contents
Table of Contents Section I Business Review Section II Financial Review POLAR CAPITAL HOLDINGS PLC 1
Slide 3: Business Review
BUSINESS REVIEW POLAR CAPITAL HOLDINGS PLC 2
Slide 4: Polar Capital Overview
Polar Capital Overview As at 30 November 2010 Polar Capital was established Ownership Total Assets Funds XL in 2001 and has $3.3bn 11% AUM, with 63 Under Management employees. C a l e doni a $3.3bn USD1090m Ben Rogoff P ol ar 14% Technology C api t al Nick Evans The Firm was listed on the 50% London
Slide 5: Analysis of Assets Under Management
Analysis of Assets Under Management As at 30 November 2010 AuM split by strategy Investor Mix (by Geography) RoW 5% Hedge Funds 27% Europe 19% US 15% UK 61% Long Only 73% AuM split by business unit Investor Mix UK 7% Seed & Other 12% Asset Manager 12% Macro 2% Foundations 1% European 17% Private Wea
Slide 6: Capacity of Funds
Capacity of Funds Fund Size Total Capacity 30 November in Current Funds Hedge Fund Strategies UK* $0.22bn $1.00bn European Conviction $0.10bn $1.00bn European Forager $0.45bn $0.50bn Discovery* $0.08bn $2.00bn Long Only Strategies Technology Trust $0.70bn $0.75bn Global Technology UCITS $0.40bn $0.7
Slide 7: Performance
Performance at 30 November 2010 UCITS Fund Strategies – Lipper Peer Group Quartile Rankings 6 months 1 year 3 years 5 years Global Technology 1 1 1 1 Japan 4 1 1 1 Healthcare Opportunities 4 2 N/A N/A Far Eastern Financial Fund 1 1 1 1 European Financial Fund 1 3 1 1 Insurance Portfolio Fund 2 1 1 1
Slide 8: Polar AUM – Good Recovery Since Crisis
Polar AUM – Good Recovery Since Crisis $3.5 $3.3 $3.1 $3.0 $2.6 $2.5 $2.5 $2.2 $2.0 $1.9 $bn $1.5 $1.5 $1.5 $1.0 $0.5 $- Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Nov-10 POLAR CAPITAL HOLDINGS PLC 7
Slide 9: Strategy
Strategy Positioning Highly differentiated performance of funds Balance of long and hedge fund product Impressive asset gathering from invigorated sales force Strong operating infrastructure positions the business well for changes in the operating and regulatory environment Strong balance
Slide 10: Strategy: Signs of Success
Strategy Signs of Success Continue to Invest Further In Sales and Marketing Added experienced sales person for London market Added two additional sales support persons Added another experienced sales person for UK regions Adding another experienced sales person for international sales Attrac
Slide 11: Sales Organisation
Sales Organisation NOVEMBER 2009 CEO 1 2 3 4 5 Sales People 1 2 Sales Support NOVEMBER 2010 CEO Head of Head of UK International 1 2 3 4? 1 2? Sales People 1 2 3 4? Sales Support POLAR CAPITAL HOLDINGS PLC 10
Slide 12: Financial Review
FINANCIAL REVIEW POLAR CAPITAL HOLDINGS PLC 11
Slide 13: Financial Review: Highlights
Financial Review Highlights AUM − AUM at 30 September 2010 up over 20% to $3.1bn from $2.5bn at March 2010 − AUM at 30 November 2010 up pleasing further 6% to $3.3bn Profitability for six months to September 2010 − Pre-tax (pre SBP) profits up to £1.7m (2009: a loss of £0.9m) − Encouraging mark
Slide 14: Financial Review: Profitability
Financial Review Profitability 6 months 6 months Year to 6 months to Sep 09 to Mar 10 Mar 10 to Sep 10 Average AUM $1.66bn $2.21bn $1.94bn $2.70bn Core operating profit £(0.9)m £0.9m £0.0m £1.7m Performance fee profit £0.1m £2.4m £2.5m £0.5m Interest and similar income £0.4m £0.8m £1.2m £0.1m PBT pr
Slide 15: Financial Review: Costs
Financial Review Costs 6 months 6 months Year to 6 months to Sep 09 to Mar 10 Mar 10 to Sep 10 Salaries and bonuses £3.9m £4.2m £8.1m £4.1m Core distributions £0.6m £1.0m £1.6m £1.6m Other staff costs £0.3m £0.1m £0.4m £0.0m Core Compensation Costs £4.8m £5.3m £10.1m £5.7m Other operating costs £2.5
Slide 16: Financial Review: Other operating costs
Financial Review Other operating costs 6 months 6 months Year to 6 months to Sep 09 to Mar 10 Mar 10 to Sep 10 IT £0.8m £0.7m £1.5m £0.9m Rent and Rates £0.5m £0.3m £0.8m £0.6m Professional Fees £0.3m £0.2m £0.5m £0.3m Insurance £0.2m £0.2m £0.4m £0.2m Travel and Entertainment £0.3m £0.2m £0.5m £0.3
Slide 17: Financial Review: Dividend
Financial Review Dividend First dividend of 1.5p (2009: 1.0p) to be paid in January 2011 Dividend reflects: Current run rate profitability of the Company Confidence in Company’s prospects Traditionally there is a second dividend paid later in the year POLAR CAPITAL HOLDINGS PLC 16
Slide 18: Financial Review: AIFMD Overview
Financial Review AIFMD Overview Directive finally approved in November 2010 Headline Little affect on Polar Capital – Products UCITS product unaffected Cayman hedge funds current private placement regime remains until 2015 to be replaced by passporting regime. – Investors Fear of non-European in
Slide 19: Summary
Summary Well positioned in challenging times Strong Consistent and impressive bull and bear market performance. Performance Across long and hedge strategies. Fund Significant potential for further growth. Capacity Total current capacity in the funds of c.$13.9 billion of which only $3.3 bill
Slide 20: Polar Capital Disclaimer
Polar Capital Disclaimer House View This document has been produced based on Polar Capital research and analysis and represents our house view. All sources are Polar Capital unless otherwise stated. Important Information The information provided in this document is for the sole use of the intended r
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