Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — Q1 2007 Earnings Presentation
20 slides from Invesco's earnings presentation, Apr 26, 2007
Slide 1: 2007 First Quarter Results
2007 First Quarter Results Martin L. Flanagan, Chief Executive Officer Loren M. Starr, Chief Financial Officer April 26, 2007
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may include statements that constitute “forward-looking statements” under the United States securities laws. Forward-looking statements include information concerning possible or assumed future results of our operations, earnings, liquidity, cash flow and
Slide 3: Discussion Topics
AMVESCAP Discussion Topics 1 Our Business Today 2 Financial Results 3 Questions and Answers 4 Appendix 2
Slide 4: Summary of First Quarter 2007 Results
Summary of First Quarter 2007 Results AUM reached record levels with March 31 AUM of $471.2 billion, up AUM $8.6 billion since the end of 4Q06 1Q07 average AUM was $466.9 billion, up $14.2 billion since 4Q06 Long-term net flows were positive during the quarter at $0.7 billion Quarterly Flows
Slide 5: Quarterly Flows
Quarterly Flows Gross sales improvement due to stronger sales in the UK, North American Retail, and Institutional channels Gross redemptions increased in offshore product range due to increased market volatility, offset by lower redemptions in our US Institutional business Total money market a
Slide 6: Distribution Channels – Quarterly Flows
Distribution Channels – Quarterly Flows Strong retail flows from our UK and Canadian clients Institutional net flows were positive, largely due to continued strength from international and structured products Private Wealth flows were negatively impacted by redemptions from a limited number of
Slide 7: Focusing On Investment Excellence
Focusing On Investment Excellence Ensuring well-defined, repeatable and disciplined investment processes that meet client expectations Retail Results % of AUM in Top Half of Peer Group 1yr 3yr 5yr Mar-07 Dec-06 Mar-06 Mar-07 Dec-06 Mar-06 Mar-07 Dec-06 Mar-06 US (Lipper)* 61% 63% 51% 66% 74% 48% 70%
Slide 8: Retail Investment Performance Detail
Retail Investment Performance Detail % of AUM in 1st and 2nd quartile 100% 100% 95% 97% 97% Quartile 80% 80% 70% 1st U.S. (Lipper) 66% 60% 61% 60% 73% 62% 69% 2nd U.K. 41% 47% 40% 40% 46% 20% 20% 35% 29% 28% 19% 23% 15% 0% 0% 1yr 3yr 5yr 1yr 3yr 5yr 100% 96% 100% 82% 84% Cont. Europe/ Asia 80% 80% 7
Slide 9: Business Highlights
Business Highlights Awards X AIM and AIM Trimark were recognized by Lipper as one of the top fund families with AIM winning 5 awards and AIM Trimark winning 4 awards X INVESCO named “Equities Manager of the Year” at 2007 Global Pensions Awards X INVESCO won ‘Best of the Best’ awards for China stra
Slide 10: World Wide Fixed Income Update
AMVESCAP World Wide Fixed Income Update 9
Slide 11: Discussion Topics
AMVESCAP Discussion Topics 1 Our Business Today 2 Financial Results 3 Questions and Answers 4 Appendix 10
Slide 12: Assets Under Management - Quarterly
Assets Under Management - Quarterly ($ billions) 1Q07 4Q06 % Change 3Q06 2Q06 1Q06 Beginning Assets $462.6 $440.6 5.0% $413.8 $410.9 $386.3 Inflows 30.4 22.9 32.8% 16.3 23.5 23.1 Outflows (29.7) (27.4) 8.4% (17.0) (21.2) (21.6) Net flows 0.7 (4.5) n/a (0.7) 2.3 1.5 Net flows in Money Market Funds an
Slide 13: Operating Results – Quarterly
Operating Results – Quarterly ($ millions) 1Q07 4Q06 % Change* 3Q06 2Q06 1Q06 Management Fees 737 722 2.1% 642 626 620 Service and Distribution 143 136 5.8% 130 133 136 Other 24 21 13.6% 19 29 27 Total Revenues 905 879 2.9% 791 788 783 Third-party distribution, service and advisory fees (234) (224)
Slide 14: Questions and Answers
AMVESCAP Questions and Answers Martin L. Flanagan, Chief Executive Officer Loren M. Starr, Chief Financial Officer 13
Slide 15: Discussion Topics
AMVESCAP Discussion Topics 1 Our Business Today 2 Financial Results 3 Questions and Answers 4 Appendix 14
Slide 16: We Are Diversified As A Firm
We Are Diversified As A Firm Delivering a diverse set of solutions to meet a broad set of global investment needs As of March 31, 2007 By Client Domicile By Channel By Asset Class Canada Retail Alterna- 10% 50% tives 6% Equity 49% U.K. U.S. 16% 59% Institutional Balanced 46% Stable 9% Europe Value 9
Slide 17: Assets Under Management – by Channel
Assets Under Management – by Channel ($ billions) Total Retail Institutional PWM September 30, 2006 $440.6 $218.8 $204.8 $17.0 Inflows 22.9 14.5 7.4 1.0 Outflows (27.4) (15.6) (10.1) (1.7) Net flows (4.5) (1.1) (2.7) (0.7) Net flows in Money Market Funds and Other (1.5) (0.3) (1.2) 0.0 Market Gains/
Slide 18: Assets Under Management – by Asset Class
Assets Under Management – by Asset Class Fixed Money Stable ($ billions) Total Equity (b) Balanced Alternatives (c) Income Market Value September 30, 2006 (a) $440.6 $198.7 $59.6 $43.2 $65.8 $48.1 $25.2 Inflows 22.9 13.2 5.3 2.1 0.6 0.6 1.1 Outflows (27.4) (11.9) (6.9) (3.2) (0.9) (2.8) (1.7) Net fl
Slide 19: Assets Under Management – by Client Domicile
Assets Under Management – by Client Domicile ($ billions) Total U.S. Canada U.K. Europe Asia September 30, 2006 (a) $440.6 $258.4 $44.6 $65.4 $44.3 $27.9 Inflows 22.9 10.1 1.3 4.2 4.6 2.7 Outflows (27.4) (14.8) (1.7) (2.9) (5.7) (2.3) Net flows (4.5) (4.7) (0.4) 1.3 (1.1) 0.4 Net flows in Money Mark
Slide 20: Additional Revenue and Expense Information
Additional Revenue and Expense Information ($ millions) 1Q07 Q406 1Q06 Operating items: Management revenues: - Performance fees 18.8 25.9 33.2 General and administration: - Legal settlements -- (6.0) -- - Insurance recoveries -- 21.8 -- 19