Abrdn European Logistics Income Plc · LSE:ASLI
Abrdn European Logistics Income — Aberdeen Asset Management — H1 2010 Earnings Presentation
29 slides from Abrdn European Logistics Income's earnings presentation, May 4, 2010
Slide 1: Aberdeen Asset Management PLC Interim Results – 31 March 2010
Aberdeen Asset Management PLC Interim Results – 31 March 2010 4 May 2010 Martin Gilbert, Chief Executive Bill Rattray, Finance Director
Slide 2: Record interim profits
Record interim profits • Revenue £294.9 million (+53%) • Group operating margin 33.5% (1H 09: 19.8%) • Clean pre-tax profit £92.6 million (+180%) • Operating cashflow £93.8 million • Bank debt reduced to £20 million and net gearing to 8.3% • Assets under management £170.9 billion • Strong revenue gr
Slide 3: A globally diversified asset and client base
A globally diversified asset and client base Money market 31 Mar 10 £bn 6% Equities Property Equities 60.2 35% 13% Fixed income 47.1 Alternative investment strategies 30.2 Property 22.6 Alternatives 18% Money market 10.8 170.9 Fixed income 28% Recent acquisitions fully integrated into the Group 2
Slide 4: Alternatives by mandate type
Alternatives by mandate type Funds of private equity 31 Mar 10 £bn 3% Funds of hedge funds Multi 14% manager Multi manager 10.2 34% Multi asset 7.4 Indexed equities 7.3 Funds of hedge funds 4.4 Indexed equities 24% Funds of private equity 0.9 30.2 Multi asset 25% Expanded product and distribution ca
Slide 5: Reconciliation of AuM by asset class
Reconciliation of AuM by asset class Alternative Fixed investment Money Equities income strategies Property market Total £bn £bn £bn £bn £bn £bn Original reporting at 30 Sep 09 50.7 51.7 7.7 22.6 13.5 146.2 Reclassified (4.7) 4.7 0.0 Amended reporting at 30 Sep 09 46.1 51.7 12.4 22.5 13.5 146.2 Net
Slide 6: New business highlights
New business highlights • Gross new business £25.1 billion (2009: £5.4 billion) • Net inflows £0.1 billion (2009: net outflows £8.5 billion) • Well diversified pipeline: £2.0 billion of mandates awarded but not funded at 31 March • Global equity flows have continued to accelerate • Redemptions in ce
Slide 7: New business flows
New business flows Gross Outflows Net flows inflows £m £m £m 1H 2010 Equities 11,132 4,287 6,845 Fixed income 4,497 11,886 (7,389) Alternative investment strategies 4,367 1,561 2,806 Property 2,086 1,166 920 Money market 3,004 6,122 (3,118) 25,086 25,022 64 1H 2009 Equities 2,674 2,388 286 Fixed inc
Slide 8: New business flows
New business flows Q1 10 Q2 10 1H 10 Pipeline £m £m £m £m Gross inflows Equities 5,392 5,740 11,132 845 Fixed income 1,938 2,559 4,497 691 Alternative investment strategies 310 4,057 4,367 - Property 481 1,605 2,086 450 Money market 1,611 1,393 3,004 - 9,731 15,354 25,086 1,986 Net flows Equities 3,
Slide 9: Gross new business by region – record flows
Gross new business by region – record flows Gross sales £25.1bn 1H 10 2009 2008 2007 3.5 4.4 Americas 3.1 2.7 1.4 3.1 Asia Pacific 2.8 3.3 17.7 14.2 EMEA 13.3 19.1 0 2 4 6 8 10 12 14 16 18 20 8
Slide 10: Distribution & product development
Distribution & product development • Credit Suisse and Mitsubishi relationships developing well • RBS already bearing fruit – commitment for new UCITS fund of absolute return funds • Property benefiting from rebound in UK property values and improved sentiment • US marketing initiative to raise Grou
Slide 11: Financial results
A ez Aberdeen Financial results
Slide 12: Summary – 6 months to 31 Mar 10
Summary – 6 months to 31 Mar 10 • Revenue: £294.9 million + 53 % (H1 2009: £192.2 million) • Clean pre-tax profit: £92.6 million + 180 % (H1 2009: £33.0 million) • Clean earnings per share: 6.05p + 149 % (H1 2009: 2.43 p) • Interim dividend: 3.2p + 14 % (H1 2009:2.8p) • Operating margin: 33.5% (H1 2
Slide 13: Income statement
Income statement 1H 2010 1H 2009 2H 2009 2009 £m Margin £m Margin £m Margin £m Margin Revenue 294.9 192.2 229.7 421.9 Other operating income 0.1 1.0 (1.3) (0.3) Total income 295.0 193.2 228.4 421.6 Staff costs (112.0) 38.0% (87.7) 45.4% (96.9) 42.4% (184.6) 43.8% Other costs (84.1) 28.5% (67.2) 34.8
Slide 14: Revenue split – emphasis on recurring revenue
Revenue split – emphasis on recurring revenue 1H 10 1H 09 2H 09 2009 £m £m £m £m Management fees 282.4 185.0 217.5 402.4 Performance fees 9.3 4.4 5.3 9.7 Transaction fees 3.2 2.5 4.3 6.9 294.9 191.9 227.1 419.0 Fair value gains - 0.3 2.6 2.9 Revenue 294.9 192.2 229.7 421.9 • 95% of revenue from recu
Slide 15: Management fees by asset class
Management fees by asset class Revenue Blended fee rate £m bps Equities 148.6 57 Fixed income 54.3 22 Money market 8.0 14 Property 55.2 49 Alternatives 16.3 19 282.4 14
Slide 16: Strong revenue growth and costs carefully controlled
Strong revenue growth and costs carefully controlled Analysis of revenues Analysis of operating expenses £295m £196m 13 £171m 33 £155m £229m 282 32 12 26 £192m Other 29 Other fees 7 21 15 Third party admin 18 10 13 IT 13 8 217 7 Management Accommodation 185 fees 112 97 88 Staff costs 1H 2009 2H 2009
Slide 17: Cashflow overview
Cashflow overview 1H10 1H09 2H09 2009 £m £m £m £m Cash generated from operations 93.8 1.4 78.2 79.6 Net interest & tax paid (13.2) (15.6) (21.8) (37.3) Exceptional costs paid (10.3) (6.7) (18.5) (25.2) Capital expenditure & investments (net) (12.1) (2.1) (18.6) (20.7) Dividends and coupons paid (39.
Slide 18: Operating cashflow
Operating cashflow 1H10 1H09 2H09 2009 £m £m £m £m Operating profit 98.9 38.3 57.4 95.7 Cash generated from operations 93.8 1.4 78.2 79.6 Conversion of profit into cash 95% 4% 136% 83% Strong operating profits turned into sustainable cashflow 17
Slide 19: Net borrowings and gearing
Net borrowings and gearing 31 Mar 10 31 Mar 09 30 Sep 09 £m £m £m 7.2% Subordinated notes 2016 81.9 86.6 77.6 3.5% Convertible bonds 2014 78.6 - - Bank debt 20.0 169.0 178.3 Total borrowings 180.5 255.6 255.9 Less: cash & cash equivalents (84.3) (34.7) (81.4) Net borrowings 96.2 220.9 174.5 Sharehol
Slide 20: A strong start to 2010
A strong start to 2010 • In good shape • Strong cashflow • Healthy balance sheet • Global distribution and client base • Well placed to continue the substantial progress made Validation of our strategy of growth through selective acquisitions 19
Slide 21: Appendix
Appendix • AuM – by client type and domicile • AuM analysis – Equity & fixed income • Property division breakout • International reach • New business analysis – Equity & fixed income • Performance – Equity & fixed income
Slide 22: Well spread by client type and client domicile
Well spread by client type and client domicile Assets by client type Assets by client domicile Property funds Asia Pacific Closed end 7% 12% funds Open end funds 4% 22% Middle East & Africa United Kingdom 8% 30% Americas 16% Europe ex UK Institutional mandate 34% 67% 31 Mar 10 31 Mar 10 Institutiona
Slide 23: Equity and fixed income analysis
Equity and fixed income analysis Equities Fixed Income High Yield Currency Overlay US Europe 1% 1% 3% EMD Convertibles UK 4% 6% 1% 5% Euro/Europe Asia Pacifiic 10% 24% Asia Pacific 35% US 16% Global 25% UK 24% Global Emerging markets 17% 28% 31 Mar 10 31 Mar 10 Asia Pacific £11.4bn Asia Pacific £21.
Slide 24: Property AuM
Property AuM Client type Location Mandate type Indirect Charities/ fund of funds and foundations segregated mandates 1% 9% Other 2% Asia 2% Other institutional Direct collective UK 23% funds 24%¹ Nordic 53% 34% Insurance/ Direct pension segregated Retail 26% 49% mandates Continental/ 38% Eastern Eur
Slide 25: International reach: 31 offices across the world
International reach: 31 offices across the world Sales & Distribution Head Office Sales & Distribution AuM by domicile Philadelphia Aberdeen Bangkok Toronto Hong Kong Sales & Distribution Singapore Investment centre Amsterdam Budapest Shanghai Philadelphia Edinburgh Frankfurt Sydney Geneva Helsinki
Slide 26: New business – Equities
New business – Equities Q1 Q2 1H 10 Pipeline £m £m £m £m Gross inflows Asia Pacific 907 1,347 2,254 131 Global emerging markets 1,843 2,337 4,180 187 Europe 16 215 231 Global & EAFE 2,267 1,746 4,013 527 UK 18 11 29 Specialist equities 135 3 138 US 205 81 286 5,391 5,740 11,131 845 Net flows Asia Pa
Slide 27: New business – Fixed income
New business – Fixed income Gross inflows Q1 Q2 1H 10 Pipeline £m £m £m £m Asia Pacific 785 858 1,644 219 Convertibles 35 81 116 Currency overlay - 12 12 Emerging markets 72 194 266 Europe 571 189 760 Global 78 348 426 High yield 99 57 156 UK 198 743 941 150 US 101 76 177 322 1,938 2,559 4,497 691 N
Slide 28: Equity performance remains resilient
Equity performance remains resilient To 31 Mar 10 1 year 3 years 5 years 10 years Aberdeen Benchmark Aberdeen Benchmark Aberdeen Benchmark Aberdeen Benchmark % pa % pa % pa % pa % pa % pa % pa % pa Asia Pacific ex Japan Equity1 75.04 67.50 17.28 13.66 21.54 18.36 15.49 9.21 Emerging Markets Equity2
Slide 29: Fixed income – performance continues to rebound
Fixed income – performance continues to rebound To 31 Mar 10 YTD 1 year 3 years 5 years 10 years Aberdeen Benchmark Aberdeen Benchmark Aberdeen Benchmark Aberdeen Benchmark Aberdeen Benchmark % pa % pa % pa % pa % pa % pa % pa % pa % pa % pa Global Government1 -0.81 -1.33 9.72 6.31 8.16 7.17 5.51 4.
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