Impax Asset Management Group plc · LSE:IPX
Impax Asset Management — Impax Group — Shareholder Meeting (February 2008)
20 slides from Impax Asset Management's shareholder meeting presentation, Feb 27, 2008
Slide 1: Impax Group plc Annual General Meeting
Impax Group plc Annual General Meeting 27 February 2008 The Environmental Investment Resource
Slide 2: Excellent Opportunities for Investors
Excellent Opportunities for Investors Environmental Sector: • Large: USD 200 billion revenues p.a. • Growing rapidly: Up to 30% p.a. • Complex technology and regulation challenge generalist investors • Sector populated by >1000 quoted (+ many unquoted) companies set to deliver superior earnings grow
Slide 3: Impax Asset Management
Impax Asset Management FUM £m • Sole trading entity of Impax Group plc Launch of Absolute Return 1200 Fund • Principal shareholders: BNP Paribas Investment Partners 1000 Launch of principal (29.4%), Keith Falconer (Chairman – private equity fund 800 8.8%), Executive Management (17%) Launch of IEM OE
Slide 4: Vision & Strategy
Vision & Strategy • Vision: Leading investment manager in the environmental markets sector • Objective: “Substantial” funds under management • Strategy: “Manufacture & manage” a small number of scaleable funds and use external distributors • Plans: - Maintain and build on investment track record - E
Slide 5: Extensive Investment and Technical Expertise
Extensive Investment and Technical Expertise Keith Falconer Ian Simm • Former Director of • Former Project Martin Currie Ltd. Manager, McKinsey & Co. • Group Chairman • Joined Jan 04 • Chief Executive • Joined Oct 96 Bruce Jenkyn-Jones Nigel Taunt Peter Rossbach Hubert Aarts • Former • Former FD • F
Slide 6: Impax – Globally Recognized & Provider of Choice
Impax – Globally Recognized & Provider of Choice 6
Slide 7: Background to Environmental Markets
Background to Environmental Markets Secular growth drivers… ….stimulating rapid expansion of environmental markets Economic Conventional market Environmental sector (examples) market (examples) • Market liberalisation • Energy • Fossil fuel power • Renewables - competition & innovation • Energy effi
Slide 8: Attractive Markets: Alternative Energy & Energy Efficiency
Attractive Markets: Alternative Energy & Energy Efficiency Environmental Markets Size (2006): >$ 65 billion Energy Drivers: Markets (ex fuels) (2006) Resource Process Supply Use >$ 300 billion • Fossil fuel prices • Security of supply • Subsidies & Wind Electric vehicles Utility software LEDs regula
Slide 9: Attractive Markets: Water Technologies & Pollution Control
Attractive Markets: Water Technologies & Pollution Control Environmental Markets Size (2006): >$ 70 billion Water Treatment & Infrastructure Drivers: Market (2006): >$ 400 billion Resource Process Supply Use • Water shortages • Superbugs Desalination Membranes Infrastructure Purification • New regul
Slide 10: Attractive Markets: Waste Technologies & Resource Management
Attractive Markets: Waste Technologies & Resource Management Environmental Markets Waste Disposal & Size (2006): >$ 60 billion Resource Drivers: Management Markets (2006): Resource Process Supply Use >$ 250 billion • Rising per capita waste generation • Limited landfill space Recycling Landfill gas
Slide 11: Listed Equities - Investment Universe
Listed Equities - Investment Universe • >50% revenues/profits/capital employed in Environmental Markets “Pure play” Environmental • Small & mid cap Stocks Companies • US$700bn aggregate market cap Environmental • Investment universe of c.650 companies Markets: Attractive for Investors • 20% - 50% re
Slide 12: Impax's investment performance
Impax’s investment performance 2007 2006 2005 2004 2003 IEM plc* 16% 21% 21% 16% 22% FTSE All-Share (Total Return) 5% 17% 22% 13% 21% MSCI World (Total Return) 8% 6% 23% 7% 20% MSCI World Small Cap (Total Return) -1% 3% 30% 16% 42% Nasdaq Composite 8% -4% 13% 1% 35% * NAV Performance of Impax Enviro
Slide 13: Private Equity: Impax New Energy Investors LP
Private Equity: Impax New Energy Investors LP INEI: Private equity fund for the New Energy Sector, largely renewables, in Western Europe Status: €125,000,000 from three closings (last August 2006) Objective: Cash-to-cash IRR of 18-25% (net to investors) Strategy: Equity-linked investments in project
Slide 14: Hedge Funds: Impax Absolute Return Fund
Hedge Funds: Impax Absolute Return Fund Fund strategy: Long/short equity Return objective: 15% per annum Expected volatility: < 10% Universe: 1400 companies globally Leverage guideline: 100% to 300% gross Market exposure guideline: -30% to +70% net, beta adjusted Optional side-pocket for pre-IPOs: U
Slide 15: Results for 2007: P&L
Results for 2007: P&L YE 9/07 (£m) YE 9/06 (£m)* Comments Turnover 7.11 3.84 Costs of operating business (3.45) (2.52) EBITA 3.66 1.32 Employee Benefit Trust Charge (0.36) (0.32) Calculated in accordance with IFRS 2 Bonuses (1.69) (0.55) Interest received 0.21 0.14 From Cash at Bank and Loan note In
Slide 16: Results for 2007: Balance Sheet
Results for 2007: Balance Sheet YE 9/07 (£m) YE 9/06 (£m)* Comments Goodwill 1.63 1.63 Other Non-Current Assets 0.10 0.04 Debtors due after One Year 1.21 1.59 Oil Promissory Note Other Current Assets 1.91 1.90 Current Asset Investments 1.62 0.07 Hedge Fund Investment Cash 4.55 2.55 Current Liabiliti
Slide 17: Employee Benefit Trust
Employee Benefit Trust Shares outstanding prior to EBT creation 92,722,053 Existing Scheme • Period covered 3 years ending 30 September 2007 • Ordinary shares allotted to the EBT 18,250,000 • Ordinary shares sold by EBT to fund its 1,472,995 purchase of ordinary shares • Ordinary shares held by EBT
Slide 18: Current Status & Outlook
Current Status & Outlook • Performance in calendar 2008 (to 15 February): - Small/mid cap funds: -9.4% - Mid/large cap funds: -8.1% - MSCI World Index (Sterling): -8.1% • Portfolios trading at (historically) low multiples of expected 2008 earnings - Small mid/cap funds: P/E = 15x - Mid/large cap fun
Slide 19: Conclusion
Conclusion • Attractive sector for an experienced investment manager • Complementary investment strategies facilitate cross-fertilisation of ideas and cement the team’s “edge” • Committed management team with strong track record • Successful scale-up of the business achieved • Distribution partnersh
Slide 20: Contact Details
Contact Details Ian Simm (CEO), Jacqueline Brown (FD) Impax Asset Management Broughton House 6-8 Sackville Street London W1S 3DG Tel: 020 7432 2609 Fax: 020 7437 1245 20