Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — H1 2001 Earnings Presentation
21 slides from Invesco's earnings presentation, 2001
Slide 1: 2001 Interim Results
2001 INTERIM RESULTS Charles W. Brady Robert F. McCullough
Slide 2: Half Year Summary
HALF YEAR SUMMARY • Continued volatility in global financial markets. • Completed acquisition of National Asset Management. Results included from May, 2001. • Pell Rudman acquisition completed today. Results included from August, 2001. • Continued emphasis on cost controls resulting in margin of 34.
Slide 3: Pell Rudman Acquisition
PELL RUDMAN ACQUISITION • Creates platform for AVZ Private Wealth Management business • Recognized leader in high net worth area – provides services to HNW individuals, families, foundations and endowments • Consideration of $172m (£122m) and asset retention payments of up to $28m (£20m) • Funds und
Slide 4: Financial Summary - First Half 2001
FINANCIAL SUMMARY - FIRST HALF 2001 • Revenues of £853.6m, up £99.3m from 2000 • Pre-tax profits (before goodwill amortization and exceptional items) of £270.7m, up £15.1m • EPS (before goodwill amortization and exceptional items) *Basic – 23.0p, down 14% *Diluted – 22.2p, down 13% • EBITDA of £334.
Slide 5: Financial Summary - 2nd Quarter 2001
FINANCIAL SUMMARY - 2ND QUARTER 2001 • Revenues of £426.3m, up £41.6m from 2000 • Pre-tax profits (before goodwill amortization and exceptional items) of £135.7m, up £4.8m from 2000 • EPS (before goodwill amortization and exceptional items) *Basic – 11.5p, down 16% *Diluted – 11.2p, down 14% • EBITD
Slide 6: Financial Review
FINANCIAL REVIEW Robert F. McCullough
Slide 7: Group Profit & Loss Account
GROUP PROFIT & LOSS ACCOUNT in thousands Six Months Ended June 30, 2001 Ordinary Exceptional activities items Total 2000 Revenues £ 853,552 £ - £ 853,552 £ 754,253 Operating expenses (559,973) (25,252) (585,225) (485,962) 293,579 (25,252) 268,327 268,291 Goodwill amortization (65,039) - (65,039) (18
Slide 8: Group Profit & Loss Account
GROUP PROFIT & LOSS ACCOUNT in thousands Three Months Ended June 30, 2001 Ordinary Exceptional activities items Total 2000 Revenues £ 426,275 £ - £ 426,275 £ 384,737 Operating expenses (278,955) (21,045) (300,000) (248,321) 147,320 (21,045) 126,275 136,416 Goodwill amortization (33,227) - (33,227) (
Slide 9: EPS Comparisons
EPS COMPARISONS First Half 2nd Quarter 2001 2000 2001 2000 Earnings per share (before goodwill amortization and exceptional items) -Basic 23.0p 26.7p 11.5p 13.7p -Diluted 22.2p 25.6p 11.2p 13.1p -Diluted per ADR at $1.41 $0.63 $0.72 $0.32 $0.37 -Diluted per ADR at $1.51 $0.67 $0.77 $0.34 $0.40 Earni
Slide 10: Quarterly Financial Comparisons
QUARTERLY FINANCIAL COMPARISONS in thousands 2001 2001 Q2 Q1 % change Revenues £ 426,275 £ 427,277 (0.2%) Operating profit* 147,320 146,260 0.7% Operating margin 34.6% 34.2% 1.2% Profit before tax* 135,698 134,955 0.6% EBITDA 168,244 166,616 1.0% EPS* -basic 11.5p 11.5p - -diluted 11.2p 11.1p 0.9% E
Slide 11: Segmental Analysis - First Half 2001
SEGMENTAL ANALYSIS - FIRST HALF 2001 in thousands Revenues Expenses Oper. Profit Managed Products £ 529,645 £ (291,599) £ 238,046 US Institutional 104,525 (77,795) 26,730 INVESCO Global 190,750 (142,623) 48,127 INVESCO Retirement 27,811 (23,678) 4,133 New Business 821 (6,266) (5,445) Corporate - (18
Slide 12: Operating Profit - 2000 v. 2001
OPERATING PROFIT - 2000 v. 2001 Increase/ in thousands 2001 2000 (Decrease) Managed Products £ 238,046 £ 226,030 £ 12,016 US Institutional 26,730 24,059 2,671 INVESCO Global 48,127 49,037 (910) INVESCO Retirement 4,133 1,021 3,112 New Business (5,445) (6,063) 618 Corporate (18,012) (25,793) 7,781 £
Slide 13: Funds Under Management
FUNDS UNDER MANAGEMENT in billions Managed Products Total AIM INVESCO US Inst Global March 31, 2001 $ 370.3 $ 175.6 $ 33.9 $ 96.2 $ 64.6 Market gains/(loss) 11.8 6.4 2.2 2.1 1.1 Acquisitions 17.1 - - 17.1 - Net new (lost) business (1.0) 0.6 0.8 (1.5) (0.9) Change in US Money Market Funds 11.0 10.0 0
Slide 14: Funds Under Management
FUNDS UNDER MANAGEMENT in billions Managed Products Total AIM INVESCO US Inst Global Dec 31, 2000 $ 402.6 $ 193.2 $ 43.2 $ 99.6 $ 66.6 Market gains/(loss) (31.0) (16.9) (7.5) (1.5) (5.1) Acquisitions 22.2 - - 17.1 5.1 Net new (lost) business 2.1 1.6 1.8 (1.3) - Change in US Money Market Funds 15.5 1
Slide 15: Balance Sheet
BALANCE SHEET in thousands June 30, Dec 31, 2001 2000 Fixed assets Goodwill £ 2,548,898 £ 2,375,542 Investments 150,672 152,521 Tangible assets 215,251 203,341 2,914,821 2,731,404 Currents assets Debtors 637,457 686,101 Investments 118,402 124,311 Cash at bank and in hand 227,165 342,073 983,024 1,1
Slide 16: Number of Shares
NUMBER OF SHARES in thousands Number of Number of Shares Outstanding Shares Oustanding Dec 31, 2000 June 30, 2001 Ordinary shares 771,038 782,424 Exchangeable shares 43,559 40,785 Less: ESOT shares (17,712) (14,778) Shares outstanding 796,885 808,431 Shares reserved for: Options 79,374 77,307 ESD's
Slide 17: Group Cash Flow
GROUP CASH FLOW in thousands Six Months Ended June 30, June 30, 2001 2000 Operating profit £ 203,288 £ 249,921 Amortization and depreciation 100,455 41,668 Change in debtors, creditors, and other (23,066) (31,839) Net cash inflow from operating activities 280,677 259,750 Banking and insurance activi
Slide 18: Analysis of Net Debt
ANALYSIS OF NET DEBT in thousands June 30, 2001 Dec 31, 2000 (Decrease)/Increase £ $ £ $ £ $ Current Debt 14,038 19,794 15,293 22,787 (1,255) (2,993) Long-term Debt: Senior notes 466,217 650,000 444,201 650,000 22,016 - Equity subordinated debentures 69,445 97,917 67,115 100,001 2,330 (2,084) Credit
Slide 19: US GAAP Reconciliation (Profit)
US GAAP RECONCILIATION (PROFIT) in thousands Six Months Ended June 30, 2001 2000 Net profit under UK GAAP £ 102,737 £ 155,414 US GAAP adjustments: Acquisition accounting (16,610) (31,634) Taxation (23,813) (15,381) Other 577 411 Net income under US GAAP £ 62,891 £ 108,810 19
Slide 20: US GAAP Reconciliation (Equity)
US GAAP RECONCILIATION (EQUITY) in thousands June 30, 2001 Dec 31, 2000 Shareholders' funds under UK GAAP £ 2,231,470 £ 2,103,080 US GAAP adjustments: Acquisition accounting 1,051,761 1,020,052 Treasury stock (173,245) (168,292) Dividends 36,379 47,813 Other 12,060 15,968 Shareholders' equity under
Slide 21: Global Investment Services
—A\y AMVESCAP Global Investment Services