Polar Capital Holdings Plc · LSE:POLR
Polar Capital — H1 2010 Earnings Presentation
16 slides from Polar Capital's earnings presentation, December 2009
Slide 1: Interim Results Presentation - Six Months Ending 30 September 2009
POLAR CAPITAL HOLDINGS PLC Interim Results Presentation For Six Months Ending 30 September 2009 Tim Woolley (CEO) John Mansell (COO) December 2009
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: Analysis of Assets Under Management
Analysis of Assets Under Management As at 30th September 2009 AuM split by strategy Investor Mix (by Geography) US 16% RoW Hedge Funds 2% 42% Europe UK (incl. CI) Long Only 16% 66% 58% AuM split by business unit Investor Mix (274 clients) Healthcare 2% Asset Managers 5% Private Banks Macro Seed & Ot
Slide 5: Overview of Polar Capital
Overview of Polar Capital Unaudited AUM flows AUM at start of period: 31 March 2009 $1.48bn Gross outflows quarter 1 [long 119 hedge 96] $(215)m quarter 2 [long 17 hedge 31] $(48)m $(263)m Gross inflows quarter 1 [long 43 hedge 35] $78m quarter 2 [long 150 hedge 146] $296m $374m Fund closures $(58)m
Slide 6: Fund Performance
Fund Performance Fund Size 30 Launch Performance Performance Volatility Index YTD* Nov 2009 Date 2008 YTD* YTD* $m Hedge Funds UK** 172 Nov 2001 5.98% 11.94% 11.37% MSCI Europe 19.79% European Conviction 132 Mar 2006 12.78% 6.93% 8.49% FTSE 100 17.06% European Forager 304 Aug 2003 -12.24% 23.73% 7.7
Slide 7: Capacity of Funds
Capacity of Funds Fund Size Fund Size Total Capacity 30 Sept 2009 30 Nov 09 in Current Funds Hedge Funds UK $150m $172m $1.0bn European Conviction $114m $132m $1.0bn European Forager $242m $304m $0.5bn Discovery $282m $270m $2.0bn Long Only Technology Trust $526m $540m $0.5bn Global Technology UCITS
Slide 8: Strategy
Strategy Positioning Highly differentiated performance of funds Balance of long and hedge fund product Integrity of the Polar model Strong operating infrastructure positions the business well for changes in the operating and regulatory environment Strong balance sheet Good internal morale Strategy I
Slide 9: Financial Review
FINANCIAL REVIEW POLAR CAPITAL HOLDINGS PLC 8
Slide 10: Financial Review: Highlights
Financial Review Highlights AUM − AUM at 30 September 2009 up 27% to $1.9bn from $1.5bn at March 2009 Profitability − Pre-tax (pre SBP) profitability down; a loss of £0.4m (2008: a profit of £1.5m) Balance Sheet − £28m of cash and £9m of investments in own, liquid, funds POLAR CAPITAL HOLDINGS PLC 9
Slide 11: Financial Review: Comments
Financial Review Comments Recovery of core profitability − Encouraging to note accelerated achievement of critical break even AUM at $1.9bn - $2bn of AUM. Costs − Strong control of costs Importance and sensitivity of performance fee receipts − Performance fees happen to fall in second half − Positio
Slide 12: Financial Review: Costs
Financial Review Costs Good control of costs as 6 months 6 months Year to 6 months Operating Costs seen to to Sept 08 to Mar 09 Mar 09 to Sept 09 fall through cycle In current period two key figures: Salaries and bonuses 4.6 3.1 7.7 3.9 1. Core compensation Core distributions 1.5 0.7 2.2 0.6 costs O
Slide 13: Financial Review: Profitability
Financial Review Profitability 6 months 6 months Year to 6 months to Sept 08 to Mar 09 Mar 09 Sept 09 Average AUM $3.1bn $2.18bn $1.65bn Core operating profit 0.9 0.4 1.3 (0.9) Performance fee profit - 8.9 8.9 0.1 Interest and similar income 0.6 0.3 0.9 0.4 PBT pre SBP £1.5m £9.6m £11.1m £(0.4)m Cor
Slide 14: Financial Review: Dividend
Financial Review Dividend First dividend of 1.0p (2008: 1.0p) to be paid in January 2010 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 13
Slide 15: Summary
Summary Well positioned in challenging times Attractive Balanced mix of hedge funds and long only funds Products Consistent and impressive bull and bear market performance Fund Significant potential for further growth Capacity Total current capacity in the funds of c.$7 billion of which only $2 bill
Slide 16: 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 presentation is for the sole use of those atte
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