Ashmore Group plc · LSE:ASHM

Ashmore — H1 2007 Earnings Presentation

24 slides from Ashmore's earnings presentation, Feb 27, 2007

  1. Slide 1: Ashmore Group plc Interim Results – 6 Months to 31 December 2006

    Ashmore Group plc Interim Results – 6 Months to 31 December 2006 27 February 2007 ASHMORECS\Half year results Feb 2007\18 Ashmore Interim Results Presentation Feb 2007.ppt

  2. Slide 2: Presentation Team

    Presentation Team „ Mark Coombs, Chief Executive Officer „ Jim Pettigrew, Chief Operating and Financial Officer 2

  3. Slide 3: Contents

    Contents „ Key Highlights „ Assets under Management „ Investment Performance „ Update on Themes „ Financial Results „ Outlook „ Appendices 3

  4. Slide 4: Key Highlights

    Key Highlights „ AuM US$ 26.8 billion (US$ 20.1 billion at 30 June 2006) up 33% „ Net management fees(1) up by 62% to £55.8 million „ Performance fees of £8.2m (H1 2006: £38.1m) „ Profit before tax growth of 2% to £60.2 million (underlying growth(2) of 13%) „ Basic earnings per share of 6.31p (H1 20

  5. Slide 5: Assets under Management

    Assets under Management Overview AuM Growth (US$bn) „ AuM of US$ 26.8bn as at 31 December 2006, 33% up on June 2006 26.8 „ Net subscriptions of US$ 4.2bn comprising 20.1 US$ 1.7bn net subscriptions into existing funds and fund raising into new products and funds $2.5bn. „ Global US Dollar theme 68%

  6. Slide 6: Investment Performance

    Investment Performance Consistent, high performing funds Volatility (Annualised Annualised Standard Performance Return Deviation 3 Year Launch AuM (since Since Volatility Theme Fund Date US$ (1) 1 Year (2) 3 Year (2) 5 Year (2) Launch) (2) Launch) (Annualised) EMLIP Oct-1992 4,565 19.01% 22.75% 26.4

  7. Slide 7: Update on Themes – Global US Dollar

    Update on Themes Global US Dollar Key Highlights Management and Performance Fees (£m) „ Global US Dollar AuM up 20% to US$18.3bn „ 68% of total AuM 52.2 33.9 32.6 „ H1 2007 AuM increased by US$3.1bn: 28.9 23.1 — Net subscriptions of US$1.3bn 3.0 — Net performance of US$1.8bn FY 2006 H1 2006 H1 2007

  8. Slide 8: Update on Themes – Global Local Currency

    Update on Themes Global Local Currency Key Highlights Management and Performance Fees (£m) „ Global Local Currency AuM up 27% to US$3.8bn 11.3 „ 14% of total AuM 9.1 „ H1 2007 AuM increased by US$0.8bn: 4.3 2.5 2.4 2.2 — Net subscriptions of US$0.4bn — Net performance of US$0.4bn FY 2006 H1 2006 H1

  9. Slide 9: Update on Themes – Special Situations

    Update on Themes Special Situations (Distressed Debt/Private Equity) Key Highlights Management and Performance Fees (£m) „ Special Situations AuM up 123% to US$2.9bn 11.9 11.1 11.3 „ 11% of total AuM „ US$1.4bn raised through Ashmore Global Special 5.8 4.4 Situations Fund 3 L.P. 0.0 „ H1 2006 perfor

  10. Slide 10: Update on Themes – Equity

    Update on Themes Equity Key Highlights Management and Performance Fees (£m) „ Equity AuM up 200% to US$1.8bn 6.7 „ 7% of total AuM 3.1 2.8 3.0 2.4 „ H1 2007 AuM increased by US$1.2bn: 1.2 — Net subscriptions of US$1.0bn FY 2006 H1 2006 H1 2007 — Net performance of US$0.2bn Net Management Fees (£m) (

  11. Slide 11: Investor Base Evolution

    Investor Base Evolution Growing Institutional Relationships through Efficient Distribution Growth in Number of Funds Investor Breakdown Investor Concentration by AuM 40 By Investor Type(1) 30 June 2006 31 December 2006 36 HNWI 9 10% 9 (2) Institutional 26 26 Other 90% Top 5 24 Top 5 4 3 13 9% Corpor

  12. Slide 12: Financial Results – Income Statement

    Financial Results Income Statement IFRS(1) YE 30 June Six Months Ended 31 Dec (£ millions) 2006 2005 2006 Key Highlights Net management fees(2) 80.8 35.4 57.8 „ Very strong net management fee growth (up 62%, net of distribution costs) Performance fees 54.2 38.1 8.2 „ Lower performance fees – EMLIP i

  13. Slide 13: Financial Results – Margins

    Financial Results Margins Total Net Revenue Net Management Fee Performance Fee Key Highlights 185.9 180 143.6 „ High and stable net Margin (bps) Total Net 116.1 management fee margin 120 97.4 Revenue 83.2 87.9 90.1 track record. Margins 57.5 „ Increase in H1 2007 net 60 13.2 management fee margin co

  14. Slide 14: Consolidated Cash Flow Statements

    Consolidated Cash Flow Statements IFRS(1) YE 30 June Six Months Ended 31 Dec (£ millions) 2006 2005 2006 Operating activities Cash receipts from customers 151.7 60.2 62.1 Cash paid to suppliers and employees (34.7) (13.5) (26.4) Cash generated from operations 117.0 46.7 35.7 Income taxes paid (22.7)

  15. Slide 15: Balance Sheet

    Balance Sheet As at 31st December 2006 (£ millions) Assets Equity Property, Plant And Equipment 0.2 Issued Capital 0.0 Intangible Assets 4.1 Share Premium 0.3 Trade and Other Receivables 0.1 Retained Earnings 154.3 Deferred Tax Assets 11.5 Total Equity 154.6 Total Non-current Assets 15.9 Trade and O

  16. Slide 16: Business strategy

    Business strategy „ Maintain a market leading investment track record ⎯ Continued upper quartile investment performance „ Deliver growth and diversification of earnings ⎯ Selling existing and new themes to current and new investors under existing and future product structures ⎯ Develop and broaden c

  17. Slide 17: Summary and Outlook

    Summary and Outlook „ Results demonstrate another period of strong growth and the continued momentum in the business. „ Progress achieved towards delivering the strategic objectives set out at the time of the Group’s IPO in October 2006. „ Trading conditions in the six months to 31 December 2006 rem

  18. Slide 18: Appendices

    Appendices ASHMORECS\Half year results Feb 2007\18 Ashmore Interim Results Presentation Feb 2007.ppt

  19. Slide 19: Appendix 1 – AuM/Product Information

    Appendix 1 – AuM/Product Information AuM by Theme and Fund/Account Classification US$bn 30-Jun-2003 30-Jun-2004 30-Jun-2005 30-Jun-2006 31-Dec-2006 Investment Theme(1) Global US$ 2.6 4.7 8.4 15.2 18.3 Local Currency 0.4 0.6 1.2 3.0 3.8 Special Situations/Distressed 0.2 0.5 1.2 1.3 2.9 Equity 0.1 0.1

  20. Slide 20: Appendix 1 – AuM/Product Information (GBP)

    Appendix 1 – AuM/Product Information AuM by Theme and Fund/Account Classification – Restated in GBP(1) GBP £bn 30-Jun-2003 30-Jun-2004 30-Jun-2005 30-Jun-2006 31-Dec-2006 Investment Theme(2) Global US$ 1.7 2.6 4.7 8.2 9.4 Local Currency 0.2 0.3 0.7 1.7 1.9 Special Situations/Distressed 0.1 0.2 0.6 0

  21. Slide 21: Appendix 1 – Management and Performance Fees by Theme

    Appendix 1 – AuM/Product Information Management and Performance Fees by Theme UK GAAP Reclassified IFRS Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended HY HY £ millions 30-Jun-2003 30-Jun-2004 30-Jun-2005 30-Jun-2006 30-Jun-2005 30-Jun-2006 31-Dec-2005 31-Dec-2006 Net Management Fe

  22. Slide 22: Appendix 2 – Additional Profit and Loss Information

    Appendix 2 – Additional Profit and Loss Information (IFRS) Management Fees 6 Months ended 6 Months ended 6 Months ended 6 Months ended 31st December 31st December 6 Months ended 31st December 30th June 2005 £ millions 2004 2005 30th June 2006 2006 Global US$ 12.0 15.2 23.1 29.1 32.6 Global Local cur

  23. Slide 23: Appendix 3 – US Dollar

    Appendix 3 – US Dollar „ Revenue is predominantly US Dollar based/costs Sterling based „ £2.1 million (net of hedging) adverse pre-tax profit impact 6 months Dec-06 vs. Dec-05 „ Sensitivity on net management fees to US Dollar/Sterling FX movement is 10c movement = +/- £3.0 million (based on 6 months

  24. Slide 24: 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

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