Impax Asset Management Group Plc · LSE:IPX
Impax Asset Management — Shareholder Meeting (March 2018)
29 slides from Impax Asset Management's shareholder meeting presentation, Mar 2, 2018
Slide 1: Impax Asset Management Group plc Annual General Meeting: 2 March 2018
Impax Asset Management Group plc Annual General Meeting: 2 March 2018 CLEAR INVESTMENT
Slide 2: Financial year 2017 milestones
Financial year 2017 milestones All major listed Record net equity strategies AUM increased Strong strategic inflows of £2.1bn outperformed 61% to new peak rationale for and strong MSCI ACWI of £7.3bn1 acquisition of Pax2 mandate pipeline over 1, 3 and 5 years 1As at 30 September 2017. Assets under a
Slide 3: Financial highlights
Financial highlights 2017 2016 % increase Assets under management1 £7.3bn £4.5bn 62% Revenue £32.7m £21.1m 55% Operating earnings2 £7.9m £4.2m 88% Profit/(loss) before tax £5.9m £5.2m 13% Diluted earnings per share 6.2p 3.6p 72% Shareholders’ equity £35.6m £26.7m 33% Interim dividend per share 0.7p
Slide 4: 2017: Business highlights
2017: Business highlights CLEAR INVESTMENT 4
Slide 5: Listed Equities: strong performance record
Listed Equities: strong performance record Percentage increase to 30 September 2017 141.8 132.8 127.9 95.6 75.7 68.5 63.9 49.8 15.0 15.1 14.9 14.9 Specialists Leaders Water MSCI ACWI 1 year 3 years 5 years 1 year 3 years 5 years Past performance of a strategy is no guarantee as to its performance in
Slide 6: Solid track record of growth
Solid track record of growth AUM FYE £m 1998 15 1999 20 Phase 1: Establishing the business 2000 39 2001 38 2002 55 2003 66 2004 69 2005 214 Phase 2: 2006 429 Scale up to critical mass 2007 982 2008 1,099 2009 1,265 2010 1,823 Phase 3: 2011 1,896 Consolidation & investment 2012 1,828 2013 2,197 2014
Slide 7: AUM growth in Europe and North America
AUM growth in Europe and North America Breakdown by client domicile (£m) 726 UK/Ireland 802 2,774 EMEA 4,898 67 Asia-Pacific 68 North 628 America 1,020 Private 285 Equity 451 22 Property 22 AUM 30/09/2016, Total £4,502m AUM 30/09/2017, Total £7,261m CLEAR INVESTMENT 7
Slide 8: Private Equity Infrastructure
Private Equity Infrastructure • NEF ll: successful realisation of assets continues — Impax expecting to receive €1.5 - €2.5m of initial € € proceeds from carried interest during H2 € 105MW • NEF III: final close May 2018 — First investments in France and Germany € 78MW € € € € 48MW €€ € € € € € € €
Slide 9: Our offices and distribution partners
Our offices and distribution partners UK / Ireland Europe North America IEM plc BNP Paribas Delaware Funds platform UCITS Platform ASN Bank Desjardins Absalon Capital NEI Pax World Funds London Portland Asia Pacific New York BNP Paribas in Hong Kong and Australia Hong Kong • In-house sales (UK, US)
Slide 10: Expanding our range of investment strategies
Expanding our range of investment strategies £7.8bn Thematic Equities £1.3bn Unconstrained Equities £11.3bn £947m Smart Beta AUM1 £844m Fixed Income £476m Real Assets London managed // US managed2 1As at 31 December 2017. Assets under advice represent ~3%. Total of asset classes may differ due to ro
Slide 11: 2017: Financial highlights
2017: Financial highlights CLEAR INVESTMENT 11
Slide 12: Financial highlights (1) – Operating performance
Financial highlights (1) – Operating performance OPERATING EARNINGS REVENUE (£m) (excluding non-recurring1) (£m) 2017 32.7 2017 9.3 2016 21.1 2016 4.2 ¹£1.4m of mark to market NIC on share schemes which are more than offset by corporation tax credits. CLEAR INVESTMENT 12
Slide 13: Financial highlights (2) – Earnings and balance sheet
Financial highlights (2) – Earnings and balance sheet DILUTED EPS (p) BALANCE SHEET1 FY 2017 6.2 30.09.17 16.3 8.5 24.8 FY 2016 3.6 30.09.16 10.5 11 21.5 “Free” assets per share around 22.3p (2016: 19.2p) 1Excluding Pax acquisition. 2Proposed. CLEAR INVESTMENT 13
Slide 14: Financial highlights (3) – Dividend
Financial highlights (3) – Dividend DIVIDEND (p) 2017 0.7 2.21 2.9 2016 0.5 1.6 2.1 2015 0.4 1.2 1.6 0.5 2014 0.3 1.1 1.4 2013 0.9 Interim 2012 0.75 Final 2011 0.7 Special 2010 0.6 2009 0.4 2008 0.35 1Proposed. CLEAR INVESTMENT 14
Slide 15: Long-term trends: Strong cost control
Long-term trends Strong cost control AUM (£bn) AVERAGE NUMBER OF EMPLOYEES FY 2017 7.3 FY 2017 73 FY 2011 1.9 FY 2011 48 TOTAL OPERATING COSTS PER EMPLOYEE (£’000)1 NON STAFF COSTS (£m) FY 2017 320 FY 2017 5.4 FY 2011 306 FY 2011 4.5 1Excludes costs relating to NIC provision on share awards. CLEAR I
Slide 16: Acquisition of Pax World Management LLC
Acquisition of Pax World Management LLC Creating a leading investment manager focused on the transition to a more sustainable global economy CLEAR INVESTMENT 16
Slide 17: Pax acquisition: transaction summary
Pax acquisition: transaction summary • Founded in 1971, a pioneer in “sustainable investing” • Impax and Pax have successfully collaborated for more than a decade to design, launch and manage the $652m1 Pax Global Environmental Markets Fund • Transaction completed on 18 January 2018, Pax renamed Imp
Slide 18: Investment capabilities
Investment capabilities Asset class Style Strategy Impax Pax Global thematic ✓ - Global unconstrained ✓ - Active US ✓ ✓ Listed equity Europe ✓ - Asia ✓ - Global thematic - ✓ Smart Beta US - ✓ Private equity ✓ - Fixed income - ✓ CLEAR INVESTMENT 18
Slide 19: Key financial metrics
Key financial metrics Impax prior to acquisition Combined Group1 Run rate revenue £36.1m £59.6m Run rate EBITDA £11.1m £15.6m Cash2 £22.3m £13.1m Investments £8.6m £8.6m Debt 0 £20.1m Shares in issue 127.7m 132.0m3│137.8m4 Goodwill/intangibles 0 £38.5m (approx) arising on acquisition 1US$/£1.293. 2A
Slide 20: Impax Asset Management Group plc structure
Impax Asset Management Group plc structure1 1Simplified. 2Sister company of Impax Asset Management (AIFM) Ltd. CLEAR INVESTMENT 20
Slide 21: Future prospects
Future prospects CLEAR INVESTMENT 21
Slide 22: Future prospects
Future prospects Attractive Strong Building investment distribution shareholder skills/strategies value Potential for Pax further scaling opportunities1 1On 18 January 2018, Impax Asset Management Group plc acquired Pax World Management LLC (“Pax”), now renamed Impax Asset Management LLC. CLEAR INVE
Slide 23: Appendix
Appendix CLEAR INVESTMENT 23
Slide 24: Income analysis
Income analysis Total Total excluding non-recurring Non-recurring year ended year ended year ended September September September 2017 2017 2017 Income statement £'000 £'000 £'000 Comments on non-recurring items Revenue 32,694 32,694 - Operating costs (24,809) (23,365) (1,444) Mark to market national
Slide 25: IPX shareholder register: Significant staff ownership
IPX shareholder register Significant staff ownership FULLY DILUTED IPX SHARES (m) SHARE AWARDS OUTSTANDING 1 End of exercise IPX issued shares 130.4 Number Vesting date Awards period outstanding 2011 ESOP - Vested 31/12/2017 Net share buy backs 2012 ESOP 850,000 Vested 31/12/2018 (13.7) to date 2013
Slide 26: Specialists: annual disclosure presentation
Specialists: annual disclosure presentation September 2017 - USD MSCI ACWI 3yr FTSE ET 3yr Total Firm Assets Ending Market Annual Gross MSCI ACWI Annual FTSE ET Annual Asset Weighted 3yr Annualized Std Year Number of Portfolios Annual Net Return Annualized Std Annualized Std (Millions) Value (Millio
Slide 27: Leaders: annual disclosure presentation
Leaders: annual disclosure presentation September 2017 - USD MSCI ACWI 3yr FTSE EO All-Share Total Firm Assets Ending Market Annual Gross MSCI ACWI Annual FTSE EO All-Share Asset Weighted 3yr Annualized Std Year (millions) Number of Accounts Annual Net Return Annualized Std 3yr Annualized Std Value
Slide 28: Water: annual disclosure presentation
Water: annual disclosure presentation September 2017 - USD FTSE EO Water FTSE EO Water MSCI ACWI 3yr Total Firm Assets Ending Market Annual Gross MSCI ACWI Annual Asset Weighted 3yr Annualized Std Technology 3yr Year Number of Portfolios Annual Net Return Technology Annual Annualized Std (Millions)
Slide 29: Important information
Important information This document has been Issued in the UK by Impax Asset Management Group plc, whose shares are quoted on AIM. Impax Asset Management Group plc is registered in England & Wales, number 03262305. Impax Asset Management Group plc is the parent company of Impax Asset Management Limi
Impax Asset Management Group — Shareholder Meeting (March 2018) on 6ix