Slide 1: 2013 Final Results
Value Partners Group Limited Incorporated in the Cayman Island with limited liability A company listed on the Hong Kong Stock Exchange Stock code: 806 HK 2013 Final Results For the year ended 31 December 2013 Results Presentation, 13 March 2014
Slide 2: Disclaimer
Disclaimer This document has been prepared by Value Partners Group Limited (the "Company") solely for use at the presentation. The information contained in this presentation has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should
Slide 3: Business review & financial highlights
Business review & financial highlights By Timothy Tse Chief Executive Officer
Slide 4: Key highlights
Key highlights % change Net sales: • 2012: US$183 million é 629% • Mainly contributed by High-Dividend Stocks Fund and US$1,334 million Greater China High Yield Income Fund • Other contributors include inflows from new institutional mandates, as well as those from China and Taiwan businesses AUM: •
Slide 5: Robust core businesses
Robust core businesses Growth drivers Products 2013 net sales Features Diversified VP High-Dividend Stocks Fund US$790 million • Captures strong dividend plays across Asia Pacific distribution (AUM: US$1,747 million) 2 channels VP China Greenchip Fund • Focuses on small- and mid-cap Greater China st
Slide 6: Greater China footprint
Greater China footprint Location Business scope Hong Kong Hong Kong • Capturing outflow from China Head Office • Expanding our management of domestic wealth • QDII product expansion • Collaboration with other top-tier mainland distributors China Shanghai WOFE • Facilitating China sales and business
Slide 7: Financial review
Financial review By Icy Wong Head of Finance
Slide 8: Financial performance overview
Financial performance overview (HK$ million) 2013 2012 % Change Fee income 1,027.6 651.6 +57.7% Distribution and advisory fee expenses (252.6) (179.0) +41.1% Net fee income 775.0 472.6 +64.0% Other income 45.2 54.1 -16.5% Total net income 820.2 526.7 +55.7% Total expenses (352.0) (272.4) +29.2% Oper
Slide 9: Breakdown of total net income
Breakdown of total net income (In HK$ million) 2013 2012 Revenue 1,027.6 651.6 Management fees 603.9 461.8 Performance fees 317.0 112.1 Other revenue: Front-end fees 87.5 77.2 Interest income from loan portfolio 18.0 0.3 Fee income from loan portfolio 1.2 0.2 Distribution and advisory fee expenses (
Slide 10: Breakdown of other (losses)/gains
Breakdown of other (losses)/gains (In HK$ million) 2013 2012 Changes in fair value of investment properties (18.5) 24.0 Net gains on investments 4.1 132.7 Net gains on investments held-for-sale 5.8 23.5 Others (1.1) (3.3) Other (losses)/gains – net (9.7) 176.9 Investment in an associate (In HK$ mill
Slide 11: Breakdown of total expenses
Breakdown of total expenses (In HK$ million) 2013 2012 Compensation and benefit expenses 267.7 197.1 Fixed salaries and staff benefits 129.9 122.6 Management bonus 125.1 68.2 Staff rebates 4.5 2.9 Share-based compensation expenses 8.2 3.4 Other expenses 84.3 75.3 Other fixed operating costs 57.1 53.
Slide 12: Flexible cost structure
Flexible cost structure Fixed cost coverage ratio (asset management business) 2.7x 500 400 300 443.7 200 167.4 100 0 Fixed expenses Net management fees Notes: Fixed expenses mainly represent fixed salaries and benefits, rent, investment research, and other administrative and office expenses for asse
Slide 13: A strong balance sheet
A strong balance sheet Consolidated balance sheet HK$ million 31/12/2013 31/12/2012 Strong cash position Assets No borrowing/debt Investments 1,658.5 54% 1,632.8 55% Current ratio at 7.6x Cash 692.1 22% 888.1 30% Receivables 386.4 13% 179.1 6% Others 343.5 11% 282.6 9% Total assets 3,080.5 2,982.6 L
Slide 14: Appendix: our recent awards and recognition
Appendix: our recent awards and recognition 2014 Best Asia ex-Japan Equity 2013 Asia Hedge Fund 25 VP High-Dividend Stocks Fund Value Partners was ranked No. 1 for 4 consecutive years (since 2010) 2013 Hedge Fund 100 Value Partners was ranked 62nd globally by AUM 2013 Outstanding Achiever Asia-Pacif
Slide 15: Investor relations contact
Investor relations contact Value Partners Group Limited 9th Floor, Nexxus Building 41 Connaught Road Central, Hong Kong www.valuepartners.com.hk Ms. Icy Wong Head of Finance and Investor Relations Email: icywong@vp.com.hk Tel: (852) 2143 0464 15