Impax Asset Management Group plc · LSE:IPX
Impax Asset Management — H1 2012 Earnings Presentation
29 slides from Impax Asset Management's earnings presentation, May 16, 2012
Slide 1: Impax Asset Management Group plc Interim Results
Impax Asset Management Group plc Interim Results: 16 May 2012 For the period 1 October 2011 – 31 March 2012 Norfolk House 31 St James’s Square London SW1Y 4JR UK Tel: +44 (0)20 7434 1122 Fax: +44 (0)20 7437 1245 Impax Asset Management Ltd is authorised and regulated by the Financial Services Authori
Slide 2: Agenda
Agenda • Business update Ian Simm (Chief Executive) • Annual results • Q&A Charlie Ridge (CFO) 2
Slide 3: Highlights (for H1: 1 October 2011 – 31 March 2012)
Highlights (for H1: 1 October 2011 – 31 March 2012) • Assets under management (“AUM”) increased 7% to £2,025m, up from £1,896m • H1 revenue £9.2m (H1, 2011: £9.9m) • Operating earnings* £2.2m (H1, 2011: £2.9m) • Unaudited loss before tax of £2.7m (H1, 2011: £2.05m profit), inclusive of £4.8m charges
Slide 4: Environmental Markets Update
Environmental Markets Update • Further expansion of core target sectors - LED market grew 71% in 2011 to ca. 10% of global lighting market - Smart grid market grew 22% in 2011 • Significant policy advancement - Durban global agreement to plan for reducing greenhouse gases - EU Energy Roadmap: renewa
Slide 5: Strategy Performance (to 31/03/12) in GBP
Strategy Performance (to 31/03/12) in GBP 2007 2008 2009 2010 2011 YTD Environmental Specialists 17.5% -20.2% 29.1% 11.9% -17.8% 10.2% Environmental Leaders N/A N/A 21.9% 15.1% -12.0% 12.2% Water N/A N/A 24.9% 20.3% -9.0% 14.5% FTSE World Index 9.5% -18.2% 19.6% 16.3% -5.8% 9.0% FTSE ET50 69.4% -37.
Slide 6: Impax AUM Breakdown
Impax AUM Breakdown Investment strategy AUM (£) 31/03/12 AUM (£) 30/09/11 Environmental Specialists 877m 838m - Impax Environmental Markets plc 369m 343m - Impax Environmental Markets (Ireland) 135m 162m - Third Party funds/accounts 373m 333m Environmental Leaders 304m 252m - Third Party funds/accou
Slide 7: AUM analysed by Geographic Region (Client Domicile)
AUM analysed by Geographic Region (Client Domicile*) Principal funds/partners • Impax Environmental Markets plc • Impax Environmental Markets (Ireland) • Impax Asian Environmental Markets plc • Impax Asian Environmental Markets (Ireland) • BNP Paribas Investment Partners • ASN Bank • Alm. Brand Inve
Slide 8: Flows for “Impax label” and Third party funds/accounts
Flows for “Impax label” and Third party funds/accounts “Impax label” funds (£m) Third party funds/accounts (£m) Note: the data above refers to Listed Equity funds and accounts only 8
Slide 9: Private Equity Highlights
Private Equity Highlights • Significant investment opportunity - Substantial need across the EU to fund construction of renewable power plants - Investment in projects offering stable, long-term, inflation-protected cashflow - Considerable “proprietary” deal flow from Impax network • NEF I - Fund I
Slide 10: Final Results: Financial Highlights (1)
Final Results: Financial Highlights (1) Revenue (£m) Operating costs (£m) Operating earnings (£m) H1 2012 9.2 H1 2012 H1 2012 2.2 7.0 H1 2011 9.9 H1 2011 7.0 H1 2011 2.9 2011 20.9 2011 14.7 2011 6.2 • Revenue down 7% vs 2011 • Investment in staff and other cost • Operating margin of 24% down from pr
Slide 11: Final Results: Financial Highlights (2)
Final Results: Financial Highlights (2) Diluted adjusted* EPS (p) EPS shares reconciliation (m) H1 2012 1.45 Diluted adjusted shares 127.7 Long-term incentive plan 0.14 Shares yet to be issued re. EIA* 12.2 (after tax) Decreased operating earnings (after tax) (0.35) Shares currently in issue 115.6 D
Slide 12: Final Results: Financial Highlights (3)
Final Results: Financial Highlights (3) Investments (£m) Cash reserves (£m) Cash reserve analysis (£m) 31 Mar 2012 6.4 31 Mar 2012 16.0 Cash as at 31 Mar 2012 16.0 Working capital 0.3 Mark to market 0.1 Operating cash Private Equity 2.5 commitments (3.1) flows Seed funding Net investment (1.5) (1.5)
Slide 13: Prospects for expansion
Prospects for expansion • Proven franchise in an area of increasing interest to investors; attractive platform for individuals / teams with expertise in complementary investment management areas • Resource scarcity - Wider perspective of Environmental Markets - Potentially attractive to new customer
Slide 14: Outlook
Outlook • Attractive prospects for environmental markets to sustain “superior growth” - Major overhaul underway in energy policies worldwide - Demographics and weak asset base driving investment in environmental infrastructure • Active investment management ideal for exploiting inefficient prices -
Slide 15: Appendix
Appendix 15 IMPAX)
Slide 16: Income Statement
Income Statement 6 months 6 months Year ended ended ended 2012 2011 2011 £'000 £'000 £'000 Revenue 9,193 9,858 20,931 Bonuses (1,906) (2,409) (5,268) Other operating costs (5,073) (4,553) (9,428) Operating earnings 2,214 2,896 6,235 Share-based payment charge for EIA extension scheme* (3,829) - (3,6
Slide 17: Balance Sheet
Balance Sheet 31 Mar 2012 31 Mar 2011 30 Sep 2011 £'000 £'000 £'000 Goodwill and intangibles 1,807 1,674 1,668 Other non current assets 794 270 509 2,601 1,944 2,177 Cash 16,292 16,293 21,416 Current asset investments 9,361 4,595 3,930 Other current assets 3,798 3,480 3,433 Total assets 32,052 26,31
Slide 18: AUM – Monthly Development (£million)
AUM – Monthly Development (£million)* *AUM stated as of month end 18
Slide 19: Remuneration Policy Update
Remuneration Policy Update • Employee Share Option Plan (“ESOP”) - Designed to incentivise management and key senior staff to deliver strong personal performance that contributes to increasing shareholder value - Strike price for “10% out-of-the-money” options to be based upon average of IPX price f
Slide 20: Impax Overview: A Compelling Business Proposition
Impax Overview: A Compelling Business Proposition • Attractive sector for specialist investment managers - Environmental policy addressing unsustainable economic development globally - 1400+ quoted companies growing rapidly, US$500 billion+ (annual revenues) - Growing evidence that institutions are
Slide 21: Investment Strategies
Investment Strategies Geographic Market cap of Typical # of Strategy Comparison Cap Bias scope universe stocks launched Indices ENVIRONMENTAL Listed LEADERS MSCI World Equity Global All Cap c.US$4tn 40-60 Mar 2008 Universe of c.1400 FTSE EOAS Investment companies* Universe ENVIRONMENTAL MSCI World S
Slide 22: Impax Asset Management: Investing Since 1998
Impax Asset Management: Investing Since 1998 AUM (£m) 1998 Impax Asset Management founded 1999 First listed equity mandate and Impax ET50 launched 2000 2001 Listing on AIM 2002 Impax Environmental Markets plc 2003 2004 Impax Environmental Markets (Ireland) Fund 2005 First Private Equity Fund 2006 Pa
Slide 23: Sector Classification
Sector Classification* Renewable & Alternative Energy** Energy Efficiency** Renewable Solar Energy Wind Power Biofuels Other Power Industrials Buildings Transport Energy Generation Generation Renewables Network Energy Energy Energy Energy Developers Equipment Equipment Equipment Efficiency Efficienc
Slide 24: 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 24
Slide 25: Competitors
Competitors Listed Equities • Products from large, branded asset managers not typically “consultant quality” • Limited number of boutiques • Sub-sector products, e.g. alternative energy, tend to underperform broader strategies • Little direct competition in North America, Asia Private Equity • Estab
Slide 26: Extensive Sector Expertise
Extensive Sector Expertise Keith Falconer Ian Simm Charlie Ridge • Chairman since • Chief Executive • CFO 2004 • 22 years sector • 25 years finance • 33 years investment expertise (16 at expertise (4 at expertise Impax) Impax) • Ex Martin Currie • Physicist, ex • Accountant, ex McKinsey Deutsche Ban
Slide 27: Strong Institutional Investor Relationships
Strong Institutional Investor Relationships Investors in Impax pooled vehicles + > 100 other institutions White label funds Investors in segregated accounts European Institution 27
Slide 28: Well-Placed Distribution Partners
Well-Placed Distribution Partners UK: United States: - Collins Stewart - Pax World - plus direct sales Continental Europe: - BNP Paribas Investment Asia/Australia: Partners - BNP Paribas Investment - ASN Bank Partners - DIAM (Japan) 28
Slide 29: Disclaimer
Disclaimer This document has been prepared by Impax Asset Management Group plc and approved by Impax Asset Management Limited (Impax, authorized and regulated by the Financial Services Authority). The information and any opinions contained in this document have been compiled in good faith, but no re
Impax Asset Management Group — H1 2012 Earnings Presentation on 6ix