Impax Asset Management Group Plc · LSE:IPX
Impax Asset Management — FY2009 Earnings Presentation
28 slides from Impax Asset Management's earnings presentation, December 2009
Slide 1: Impax Asset Management Group plc Preliminary Results, December 2009
Impax Asset Management Group plc Preliminary Results, December 2009 Pegasus House, 37-43 Sackville Street, London, W1S 3EH, UK Tel: +44 (0)20 7434 1122 Fax: +44 (0)20 7437 1245 Impax Asset Management Group plc is authorised & regulated by the Financial Services Authority
Slide 2: Disclaimer
Disclaimer This presentation Thi t ti h has b been prepared d by b Impax I A Assett Management M t Group G plc l (the (th "Company") "C ") in i connection with updating its shareholders as to its performance. This presentation does not constitute a prospectus or listing particulars relating to the C
Slide 3: Agenda
Agenda Keith Falconer • Overview of the Business (Chairman) • Preliminary Results Ian Simm ((Chief Executive)) • Q&A Charlie Ridge (COO & Finance Director) 3
Slide 4: Business overview
Business overview • Established fund manager dedicated to the environmental sector - founded in 1994 - £1.4 billion funds under management/advisory (30 November 2009) - highly qualified, stable management team with significant equity stake • Scalable business model - institutional investors attracte
Slide 5: Powerful drivers behind the environmental sector
Powerful drivers behind the environmental sector • Environmental policy addressing unsustainable economic growth - Rising populations/standards of living - Weak infrastructure - Pollution & resource scarcity - Significant fiscal stimulus funding (US$500 billion+) pledged to sector • Rapidly expandin
Slide 6: Environmental markets well diversified
Environmental markets well diversified Renewable & alternative energy Energy efficiency Energy Renewable Other Industrials Buildings Solar energy Wind power Power network Transport energy energy Biofuels renewables energy energy generation eqpt. generation eqpt. efficiency efficiency developers eqpt
Slide 7: Extensive investment and sector expertise
Extensive investment and sector expertise Keith Falconer Ian Simm Charlie Ridge • Chairman since • Chief Executive • COO 2004 • 19 years sector • 20 years finance • 30 years Expertise (13 at expertise (1 at investment Impax) Impax) expertise • Physicist, y , ex • Accountant,, ex • Ex Martin Currie M
Slide 8: Strong institutional investor relationships
Strong institutional investor relationships Investors in pooled vehicles Consultants + > 100 other institutions White label funds Investors in segregated accounts E ropean European Institution 8
Slide 9: FTSE’s partner for environmental indices
FTSE’s partner for environmental indices • Growing demand for sector indices • Impax ET50 Index operating since 1999 • Impax-FTSE partnership established in 2007 • FTSE now marketing 18 indices world-wide • Impax revenue share and brand/profile benefits 9
Slide 10: Well placed distribution partners
Well p placed distribution partners p UK: - Collins Stewart United States: S - plus direct sales - Pax World - Titanium Asset Management Continental Europe: - BNP Paribas Investment Asia/Australia: Partners + Fortis IM (post - BNP Paribas Investment merger with BNPP IP) Partners - ASN Bank - DIAM (J
Slide 11: Quoted equities: products derived from core universe
Quoted equities: products derived from core universe ENVIRONMENTAL LEADERS • Global universe • 1,300+ 1 300 stocks t k • Total market cap = US$3 trillion Focused strategies ASIA‐PACIFIC ASIA PACIFIC SPECIALISTS WATER HEDGED PORTFOLIO • Businesses based in • Typically smaller • Sector sub‐universe •
Slide 12: Private equity: strong foundation for further growth
Private equity: q y strong g foundation for further growth g • Significant opportunity to fund construction of EU renewable power plants • Investment in project co’s offering stable, long-term, inflation linked cashflow • Impax network provides “proprietary” deal flow • Fund I (€125m) now substantia
Slide 13: Product range
Product range AUM ((£)) Strategy gy Outperformance p 30/09/09 Launch 1 Yr 3 Yr 5 Yr • Environmental Specialists (“Pure Play”) 840m 1999 - Impax Environmental Markets plc 375m - Impax Environmental Markets (Ireland) 189m - Third party funds/accounts 276m • Environmental Leaders (“All Cap”) 126m 2007
Slide 14: Preliminary results: Commercial highlights
Preliminary results: Commercial highlights • Significant expansion of FUM - £1.09 billion ((1 October 2008)) - £1.26 billion (30 September 2009) - £1.42 billion (30 November 2009) • Positive outlook for environmental sector • Strong investment performance across product range • Significant inflows;
Slide 15: Preliminary results: Financial highlights (1)
Preliminary results: Financial highlights (1) • Revenues £10.4m (2008: £11.4m) - collapse in equity markets followed by partial rebound (see slide 18) - strong investment performance (see slide 19) - significant inflows/contract wins; limited outflows (see slide 21) - includes £0 £0.9m 9m of excepti
Slide 16: Preliminary results: Financial highlights (2)
Preliminary results: Financial highlights (2) • Cashflow: - operating cashflow before working capital: £2.7m (2008: £4.1m) - significantly i ifi tl stronger t monthly thl ““run rate” t ” att year end d - investment cashflow: -£0.3m (2008: -£1.8m) • Tax paid: £0 £0.8m 8m (33 (33.4%); 4%); 2008: £1 £1
Slide 17: Equity markets “under water” for most of the period
Equity markets “under water” for most of the period * 115.0 • NAV of principal fund 110.0 below starting point for 105.0 10 months of period 100.0 95.0 • Most clients pay monthly based on month-end NAV 90.0 85.0 80.0 • Impact on revenues…. IEM 75.0 MSCI World 70 0 70.0 hgfhf * IEM = Impax Environmen
Slide 18: Performance of Impax Environmental Markets (to 30/9/09)
Performance of Impax Environmental Markets (to 30/9/09) 3 year 5Y 3Y 1Y 3M 1M YTD volatility Impax Environmental Markets plc 80% 22% 10% 20% 8% 25% 21% (Undiluted) MSCI World 38% 4% 9% 21% 6% 14% 22% MSCI World Small Cap 48% 7% 17% 26% 8% 28% 23% FTSE All-Share 38% -3% 11% 22% 5% 23% 26% All indices
Slide 19: Increase in AUM in most geographies during period
Increase in AUM in most g geographies g p during g period* p Principal Funds/ Partners UK/Ireland 596 623 • Impax Environmental Markets plc • Impax Environmental Markets (Ireland) Other Europe 290 417 • BNP Paribas Investment Partners • ASN Bank • Alm. Brand Invest Asia Pacific 94 82 • DIAM • BNP Pa
Slide 20: Net inflows driven by third party funds/accounts
Net inflows driven by y third p party y funds/accounts “Impax pa Label” abe funds u ds (£m) (£ ) Third d party pa ty funds/accounts u ds/accou ts (£m) (£ ) AUM 01.10.08 563 418 Inflows 7 121 Outflows 43 46 Market Movements/ 43 68 Currency AUM 30.09.09 570 560 20
Slide 21: Significant new accounts in 2009
Significant g new accounts in 2009 • Environment Agency Pension Fund - £15m to top up £35m account (September 2009) • Russell Investments - second account (October 2009) • European Institutional Investor - €150m mandate (funded with €80m by 30 November 2009) following tender • Impax Asian Environmen
Slide 22: Diversified, stable client base
Diversified,, stable client base “Impax Label” (AUM 30/09/09) Impax Asian Environmental Markets Total £570m (launched 22/10/09) T t l £104.5m Total £104 5 Multi Managers Private Client 13% Private Client Managers Managers 24% 32% Other Other institutions institutions 23% 42% Insurance Pension Funds
Slide 23: Employee Benefit Trust
Employee p y Benefit Trust • Two schemes - Both subject to share price hurdle and individual performance targets - 2005 Scheme (16.8m shares net): 100% allocated and vested - 2008 Scheme (18.25m shares); 0% allocated (currently) - FY2008 hurdle not achieved (44p) - FY2009 hurdle measured to Feb 2010
Slide 24: Outlook
Outlook • Environmental sector drivers set to strengthen - growing urgency to address global warming - US and Asian policy expected to strengthen in 2010 - Disbursement of stimulus funding to underpin sector demand in 2010 & 2011 • Mounting evidence that institutional investors allocating to this ar
Slide 25: Appendix
Appendix 25
Slide 26: Year-end 2009: profit & loss
Year-end 2009: profit & loss YE 9/09 YE 9/08 (restated) (£m) (£m) Turnover 10.39 11.39 Operating expenses (8.07) (8.16) Comprising: • Cost of operating business (5.47) (4.67) • Bonuses (2.05) (2.57) • Long-term incentive (0.55) (0.92) PBIT (Profit before interest & tax) 2.32 3.23 Interest received 0
Slide 27: Year-end 2009: balance sheet
Year-end 2009: balance sheet YE 9/09 YE 9/08 (restated) (£m) (£m) Goodwill 1.63 1.63 Other Non-Current Assets 1.72 1.66 Debtors due after One Year 0.08 0.08 Other Current Assets 3.19 2.18 Current Asset Investments 3.93 4.17 Cash 10 28 10.28 7 03 7.03 Current Liabilities (5.29) (4.18) Minority Intere
Slide 28: Employee Benefit Trust - Details
Employee Benefit Trust - Details Shares outstanding prior to EBT creation 92,722,053 First scheme • Period covered 3 years ending 30 September 2007 • Ordinary shares allotted to the EBT 18,250,000 • Ordinary shares sold by EBT to fund its 1,472,995 purchase of ordinary shares • Ordinary shares held
Impax Asset Management Group — FY2009 Earnings Presentation on 6ix