Impax Asset Management Group Plc · LSE:IPX
Impax Asset Management — H1 2013 Earnings Presentation
31 slides from Impax Asset Management's earnings presentation, 2013
Slide 1: Impax Asset Management Group plc Interim Results to 31.03.2013
Impax Asset Management Group plc Interim Results to 31.03.2013
Slide 2: Agenda
Agenda • Business update Ian Simm (Chief Executive) • Interim results • Q&A Charlie Ridge (CFO) 2
Slide 3: Summary
Summary • Assets under management (“AUM”) increased 22% to £2,234m, up from £1,830m at 30 September 2012 • H1 revenue £8.7m (H1, 2012: £9.2m ) • Operating earnings1 £1.8m (H1, 2012: £2.2m ) • Unaudited profit before tax of £1.5m (H1, 2012: £2.7m loss2) • Diluted earnings per share 1.38 pence (adjust
Slide 4: Resource Efficiency of Environmental Markets - Update
Resource Efficiency of Environmental Markets ‐ Update Compelling Drivers Carbon dioxide concentration reaches 400ppm1 Global economic recovery2 Near Term Catalysts 112 US GDP (rebased 31.03.2005) 110 108 106 104 102 100 Obama election win Beijing air pollution Source: Images from Wikipedia. FactSet,
Slide 5: Strategy Performance (to 31.03.13) in GBP
Strategy Performance (to 31.03.13) in GBP YTD 2012 2011 2010 2009 2008 Specialists 16.0% 8.3% ‐17.8% 11.9% 29.1% ‐20.2% Leaders 15.7% 16.4% ‐12.0% 15.1% 21.7% ‐10.0%1 Water 16.4% 19.7% ‐9.0% 20.3% 24.9% ‐ Asia‐Pacific 16.4% 9.0% ‐33.8% 26.5% 10.9%2 ‐ Food and Agriculture 12.5% 1.9%3 ‐ ‐ ‐ ‐ FTSE ET5
Slide 6: Strategy Performance: Rolling 12 Months (to 31.03.13) in GBP
Strategy Performance: Rolling 12 Months (to 31.03.13) in GBP Leaders relative to MSCI World Specialists relative to MSCI World 10% 10% 5% 5% 0% 0% ‐5% ‐5% ‐10% ‐10% ‐15% ‐15% ‐20% ‐20% ‐25% ‐25% Asia‐Pacific relative to MSCI AC Asia‐Pacific ex Japan Water relative to MSCI World 10% 10% 5% 5% 0% 0% ‐
Slide 7: Water Strategy
Water Strategy BNP Paribas Aqua Fund AUM (£m) Investment performance in GBP 200 Water Strategy FTSE EO Water Technology Nov 2008 8 180 MSCI World 160 Sept 2012 68 140 120 Mar 2013 206 100 80 7 Source: FactSet, WM Reuters. FTSE index total return, MSCI index net total return All data as at 31 March 2
Slide 8: Food and Agriculture Strategy
Food and Agriculture Strategy Key Differentiators: Investment performance in GBP 118 Food and Agriculture Strategy • Investing across entire value chain 116 Custom Peer Group 114 MSCI World • Concentrated portfolio 112 • Value‐based stock picking 110 108 106 104 102 100 8 Source: FactSet, WM Reuters
Slide 9: Impax AUM Breakdown
Impax AUM Breakdown AUM (£) AUM (£) Percentage Investment strategy 30 Mar’13 30 Sep’12 increase Specialists 861m 759m 13.4% ‐ Impax Environmental Markets plc 377m 327m ‐ Impax Environmental Markets (Ireland) Fund 101m 102m ‐ Impax Global Resource Optimization Fund LP 10m 6m ‐ Third Party funds/accou
Slide 10: AUM (£m) Analysed by Geographic Region (Client Domicile)
AUM (£m) Analysed by Geographic Region (Client Domicile) Principal funds/partners • Impax Environmental Markets plc 836 • Impax Environmental Markets (Ireland) UK/Ireland • Impax Asian Environmental Markets plc 746 • Impax Asian Environmental Markets (Ireland) 890 • BNP Paribas Investment Partners O
Slide 11: 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) March 2013 710 March 2013 1,139 Market 132 Market movement 176 movement Inflows 9 Inflows 223 Outflows (43) Outflows (89) Fee adjustment* (25) September 2012 637 September 2012 829 Note: t
Slide 12: Business Update – Funds
Business Update – Funds Listed Equities Private Equity/Infrastructure • Strong performance across all strategies • NEF I (€125m) ‐ Fully invested and operating assets • Water performing well ‐ Further European registrations for ‐ Modest write down following BNP Paribas Aqua confirmation of tax incre
Slide 13: Business Update - Distribution
Business Update ‐ Distribution UK • Head of Wholesale Distribution joined February 2013 • Food and Agriculture: strong interest from wealth managers; first external investor Europe • Water: BNP Paribas marketing campaign United States • Resource Optimization theme gaining recognition and traction •
Slide 14: Changing Investor Sentiment
Changing Investor Sentiment At about 300 colleges across the country, young activists worried about climate change are borrowing a strategy that students successfully used in decades past. In the 1980s… 14
Slide 15: US: Growth in Assets Under Management
US: Growth in Assets Under Management AUM (£m) £57m by 60 31 March 2013 50 40 30 20 10 0 15 All data as at 31 March 2013 in GBP
Slide 16: Raising our Profile in North America
Raising our Profile in North America 16
Slide 17: IAEM plc Update
IAEM plc Update • Change in major shareholders of Impax Asian Environmental Markets plc • Proposal will be sent to shareholders in June: ‐ Redeem through managed realisation of portfolio; or ‐ Maintain exposure via roll‐over into IAEM Ireland • Attractive secular themes: resources, infrastructure, e
Slide 18: Interim Results: Financial Highlights (1)
Interim Results: Financial Highlights (1) Revenue (£m) Operating costs (£m) Operating earnings (£m) H1 2013 8.7 H1 2013 6.8 H1 2013 1.8 H1 2012 7.0 H1 2012 2.2 H1 2012 9.2 2012 14.0 2012 4.6 2012 18.6 • Revenue down 5% vs. H1 2013 primarily • Cost base reflects full effect of build out • Operating m
Slide 19: Interim Results: Financial Highlights (2)
Interim Results: Financial Highlights (2) Diluted adjusted* EPS (p) Issued IPX ordinary shares (m) Employee Share Option Plan (m) H1 2013 Maximum total 1.38 Shares in issue at 14.0 127.7 ESOP awards 31 Mar 2013 Increased other treasury 0.07 gains (after tax) ESOP options Long‐term incentive Shares i
Slide 20: Interim Results: Financial Highlights (3)
Interim Results: Financial Highlights (3) Investments (£m) Cash reserves (£m) Cash reserve analysis (£m)* Cash as at 31 Mar 2013 15.2 15.2 31 Mar 2013 31 Mar 2013 9.0 Working capital 0.5 Short‐term liabilities (2.3) Operating cash flows 2.1 Mark to 0.6 (0.8) market Share buy backs Seed funding outfl
Slide 21: Outlook
Outlook • Attractive prospects for target markets to sustain “superior growth” ‐ On‐going overhaul in energy policies worldwide ‐ Demographics, weak asset base and weather risk driving global investment in infrastructure ‐ Secular expansion of food/agriculture value chain • Impax “platform” well pos
Slide 22: Appendix
22 Appendix IMPAX)
Slide 23: Income Statement
Income Statement 6 months 6 months Year ended ended ended 2013 2012 2012 £'000 £'000 £'000 Revenue 8,671 9,193 18,621 Bonuses (1,572) (1,906) (3,516) Other operating costs (5,261) (5,073) (10,552) Operating costs (6,833) (6,979) (14,068) Operating earnings 1,838 2,214 4,553 Share‐based payment charg
Slide 24: Balance Sheet
Balance Sheet 31 Mar 2013 31 Mar 2012 30 Sep 2012 £'000 £'000 £'000 Goodwill and intangibles 1,744 1,807 1,629 Other non‐current assets 604 794 866 2,348 2,601 2,495 Cash and cash equivalents 15,244 16,292 19,671 Current asset investments 9,224 9,361 8,710 Other current assets 4,038 3,798 2,998 Tota
Slide 25: Impax's Listed Equity Investment Strategies
Impax’s Listed Equity Investment Strategies Inception Global All cap AUM* date LEADERS • 1400 companies • $3trn market cap £376m Mar 2008 Listed Equity Energy WATER Investment Universe Water Waste • 300 companies • $0.5trn market cap £388m Jan 2009 • 2400 • 1400 ASIA‐PACIFIC companies compan
Slide 26: Impax Asset Management: Investing Since 1998
Impax Asset Management: Investing Since 1998 Year Milestone AUM (£m) 1998 Impax Asset Management founded 15 1999 First listed equity mandate and Impax ET50 Index 22 2000 36 2001 Listing on AIM 39 2002 Launch of Impax Environmental Markets plc 55 2003 68 2004 Launch of Impax Environmental Markets (Ir
Slide 27: Development of Environmental Indices
Development of Environmental Indices • Impax is FTSE’s global partner for the environmental sector • 18 environmental sector indices • Launched in 2007 • Adopted by major pension funds as a benchmark 27
Slide 28: 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 29: Extensive Expertise
Extensive Expertise Keith Falconer Ian Simm Charlie Ridge • Chairman since • Chief Executive • CFO 2004 • 23 years’ • 26 years’ • 33 years’ experience experience experience Bruce Peter Ominder Ken David Kaye Jenkyn‐Jones Rossbach Dhillon Locklin Richardson Forrest • MD, Listed • MD, Private • Head o
Slide 30: Strong Investor Relationships
Strong Investor Relationships 100+ Institutions European Institution 30
Slide 31: Disclaimer
Disclaimer This document has been prepared by Impax Asset Management Group plc and approved by Impax Asset Management Limited (Impax, authorised and regulated by the Financial Conduct Authority). The information and any opinions contained in this document have been compiled in good faith, but no rep
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