Ashmore Group plc · LSE:ASHM
Ashmore — H1 2012/13 Earnings Presentation
27 slides from Ashmore's earnings presentation, Feb 21, 2013
Slide 1: Interim Results: Six months to 31 December 2012
Ashmore Group plc Interim Results Six months to 31 December 2012 21 February 2013
Slide 2: Highlights
Highlights • Assets under management (“AuM”) of US$71.0 billion at 31 December 2012, an increase of US$7.3 billion (11%) from 30 June 2012 • Gross subscriptions US$8.8 billion (H1 2011/12: US$6.7 billion) and net inflows US$1.6 billion (H1 2011/12: US$0.7bn) • Total net revenue £163.7 million (H1 20
Slide 3: Assets under Management Overview
Assets under Management Overview Key highlights: H1 2012/13 Assets under Management (US$bn) • AuM increased by US$7.3bn (11%) from 30 80 71.0 June 2012 to US$71.0bn 70 65.8 63.7 • Average AuM increased 7% vs H1 2011/12 60 50 • Gross subscriptions of US$8.8bn (H1 37.5 35.3 2011/12: US$6.7bn, H2 2011/
Slide 4: Assets under Management: Subscriptions and redemptions
Assets under Management Subscriptions and redemptions H1 2012/13 AuM development (US$bn) Redemptions as a % of average AuM 8.8 (7.2) 5.9 (0.2) 26% 14% 13% 71.0 11% 10% 9% 9% 7% 7% 6% 6% 5% 4% 63.7 H1 2008 H2 2009 H1 2011 H2 2012 H1 2007 H2 2007 H2 2008 H1 2009 H1 2010 H2 2010 H2 2011 H1 2012 H1 2013
Slide 5: Assets under Management: Investment performance
Assets under Management Investment performance Funds outperforming versus Funds outperforming versus Funds outperforming versus benchmark – Gross 1 Year1 benchmark – Gross 3 Years1 benchmark – Gross 5 Years1 100% 100% 100% 80% 80% 80% 60% 60% 60% 40% 40% 40% 20% 20% 20% 0% 0% 0% External Local Corpo
Slide 6: Financial Results: Statutory income statement
Financial Results Statutory income statement Six months ended Six months ended 31 December 2012 31 December 2011 Variance £m £m £m % Net revenue 163.7 181.0 (17.3) (10) Gains/(losses) on investment securities 9.3 (1.0) 10.3 - Change in third-party interests in consolidated funds (2.2) 0.2 (2.4) - Pe
Slide 7: Financial Results: Net revenue
Financial Results Net revenue Six months ended Six months ended 31 December 2012 31 December 2011 Variance £m £m £m % Management fees 150.2 152.8 (2.6) (2) Less: distribution costs (2.0) (1.4) (0.6) - Net management fees 148.2 151.4 (3.2) (2) Performance fees 15.3 23.0 (7.7) (33) Other revenue 2.3 3
Slide 8: Financial Results: Revenue margins
Financial Results Revenue margins Average net management fee margins (bps) Drivers of margin development (bps) 300 260 250 H1 2011/12 H1'12 H2'12 H1'13 to H2 2011/12 200 Headline theme 1.5 mix 2.5 Other * 150 120 101 100 76 72 69 71 67 64 52 50 17 0 H2 2011/12 Blended Local Equities Multi-strategy G
Slide 9: Financial Results: Expenses
Financial Results Expenses Six months ended Six months ended 31 December 2012 31 December 2011 Variance £m £m £m % Personnel expenses 12.2 11.7 (0.5) (4) Variable compensation 25.8 30.6 4.8 16 Other expenses 12.0 11.5 (0.5) (4) Depreciation 1.1 0.7 (0.4) - Amortisation 10.0 4.1 (5.9) - Total operati
Slide 10: Financial Results: EBITDA and Adjusted operating profit
Financial Results EBITDA and Adjusted operating profit Six months ended Six months ended 31 December 2012 31 December 2011 Variance £m £m £m % Net revenue 163.7 181.0 (17.3) (10) Operating expenses (49.6) (53.8) 4.2 8 EBITDA 114.1 127.2 (13.1) (10) EBITDA margin 70% 70% Depreciation (1.1) (0.7) (0.4
Slide 11: Financial Results: Earnings
Financial Results Earnings Six months ended Six months ended 31 December 2012 31 December 2011 £m £m Profit before tax 120.2 129.8 Tax (26.3) (33.7) Profit after tax 93.9 96.1 Attributable to: Equity holders of the parent 94.3 93.8 Non-controlling interests (0.4) 2.3 Earnings per share – basic 13.94
Slide 12: Financial Results: Cash flow and balance sheet items
Financial Results Cash flow and balance sheet items Six months ended Six months ended 31 December 2012 31 December 2011 £m £m Cash from operations 127.5 114.0 Taxation (29.8) (31.0) Interest 1.3 1.0 Acquisitions (11.9) 0.4 Seeding (17.8) (18.2) Dividends (77.9) (74.5) Treasury / own shares 0.0 (40.8
Slide 13: Strategic Developments: Progress made
Strategic Developments Progress made Global presence Indonesian operation established — Regulatory approvals received Moscow — Fully operational Beijing London Everbright JV — Two equity funds launched Feb 2013 New York & distribution Istanbul China joint venture with Central China Securities Co
Slide 14: 20 years of EM Investing: Increasingly important role in global economy
20 years of EM Investing Increasingly important role in global economy Share of global GDP EM debt outstanding 100% 12,000 90% 10,000 80% 70% 53% 8,000 60% US$bn 50% 40% 6,000 40% 36% 4,000 30% 20% 2,000 10% 0% 0 1996 1999 1992 1993 1994 1995 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 20
Slide 15: 20 years of EM investing: Tighter spreads as EM crises make way for IG
20 years of EM investing Tighter spreads as EM crises make way for IG ratings EMBI-GD spreads since launch of EMLIP (Oct 1992) 2,000 Mexico 6000 Legend 1,800 Investment Grade rating Default / devaluation 5000 EMLIP gross 1,600 Crisis annualised return Brazil since inception = 1,400 21.1% 4000 Russia
Slide 16: Ashmore's proven ability to perform
20 years of EM Investing Ashmore’s proven ability to perform Strong long term performance track record… …uninhibited by wider spreads Composite (% ) Relative (% ) Index spread Composite (% ) Relative (% ) 1993 +52 +8 1993 Tighter 1994 -10 +9 1994 Wider -10 +9 1995 +42 +15 1995 Unchanged +42 +15 1996
Slide 17: Outlook
Outlook Economic and market backdrop remains favourable for EM allocations — Accelerating GDP growth — Inflation under control; rate cuts possible — Greater market stability with reduced tail risks — Appetite for risk assets — Currencies coming to the fore • DM investors remain underweight EM • 20
Slide 18: Appendices
Appendices Ashmore
Slide 19: Appendix 1a – GBP / USD revenues
Appendix 1a – GBP / USD revenues Management and performance fees by theme (GBP) £ millions FY11 FY12 H112 H113 Net management fees less distribution costs External debt 62.5 64.9 30.8 34.4 Local currency 38.5 45.4 22.6 24.0 Corporate debt 12.5 13.0 5.8 8.4 Blended debt 28.0 37.7 17.9 23.9 Equities 5
Slide 20: Appendix 1b – GBP / USD revenues
Appendix 1b – GBP / USD revenues Management and performance fees by theme (USD) US$ millions FY11 FY12 H112 H113 Net management fees less distribution costs External debt 99.5 103.1 50.4 54.5 Local currency 61.5 72.1 36.2 38.5 Corporate debt 20.0 20.7 9.3 13.4 Blended debt 44.7 59.9 28.6 38.8 Equiti
Slide 21: Appendix 2a – AuM / product information
Appendix 2a – AuM / product information AuM by theme and fund account / classification US$ billions FY11 FY12 H112 H113 Investment theme External debt 14.3 15.9 13.6 15.3 Local currency 9.4 10.0 9.2 13.2 Corporate debt 1.3 2.4 1.9 3.1 Blended debt 10.9 12.4 12.0 16.6 Equities 10.1 6.2 7.0 6.0 Altern
Slide 22: Appendix 2b – AuM / product information
Appendix 2b – AuM / product information AuM splits AuM by theme (US$bn) AuM as invested (US$bn) External 9.4 9.4 15.3 Local External 5.1 3.3 22.4 Local Corporate 2.3 Blended 7.0 Corporate 6.0 Equities Equities 13.2 Alternatives Alternatives 9.8 Multi-strategy Overlay/liquidity 16.6 3.1 19.1 Overlay/
Slide 23: Appendix 2c – AuM / product information
Appendix 2c – AuM / product information AuM movements by investment theme YTD to 31-Dec-12 Net mgt AuM Gross Gross AuM fee margins US$ billions 30-Jun-12 Performance redemptions subscriptions Net flows Reclassification 31-Dec-12 (bps) External debt 15.9 1.4 (2.5) 1.5 (1.0) (1.0) 15.3 67 Local curren
Slide 24: Appendix 3 – Investment performance – public funds
Appendix 3 – Assets under management Investment performance – public funds Annualised Performance (1) 3 Year Launch AuM Since Standard Source: Ashmore (un-audited), JP Morgan, Theme Fund Date US$M Launch 1 Year 3 Year 5 Year 10 Year Deviation Morgan Stanley. Data as at 31st December 2012. Returns gr
Slide 25: Appendix 4 – Cash flow reconciliation
Appendix 4 – Cash flow reconciliation Consolidated funds Six months ended 31 December 2012 Six months ended 31 December 2011 As reported Consolidated Group Consolidated Group funds ex funds As reported Funds ex funds £m £m £m £m £m £m Cash from operations 127.1 (0.4) 127.5 114.0 114.0 Taxation (29.8
Slide 26: Disclaimer
Disclaimer IMPORTANT INFORMATION This document does not constitute an offer to sell or an invitation to buy shares in Ashmore Group plc or any other invitation or inducement to engage in investment activities. Certain statements, beliefs and opinions in this document are forward-looking, which refle
Slide 27: Ashmore
Ashmore