Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — Q3 2002 Earnings Presentation
21 slides from Invesco's earnings presentation, Oct 24, 2002
Slide 1: 2002 Third Quarter Results
AMVESCAP Helping people worldwide build their financial security 2002 Third Quarter Results Charles W. Brady, Executive Chairman Robert F. McCullough, Chief Financial Officer October 24, 2002
Slide 2: Forward-Looking Statement
Forward-Looking Statement Callers who access the call during the live transmission will be deemed to have solicited access to the call for the purposes of the UK Financial Services and Markets Act regime governing real-time financial promotion. The presentations that follow may include information t
Slide 3: Third Quarter Summary
Third Quarter Summary Difficult market conditions continued through Q3. All major indexes declined over 17% in the quarter; over 20% decline for the year. Major cost reduction programs have been initiated to reduce operating expenses by £100m by end of 2003. Asset mix at September 30, 2002 – 5
Slide 4: Financial Summary Three Months Ended September 30, 2002
Financial Summary Three Months Ended September 30, 2002 Revenues at £307.5m, down 21% from prior year. Pre-tax profits (before goodwill and exceptional items) of £70.7, down 36%. Diluted EPS (before goodwill and exceptional items) of 6.0p, down 35% from prior year. Funds under management of
Slide 5: Financial Summary Nine Months Ended September 30, 2002
Financial Summary Nine Months Ended September 30, 2002 Revenues at £1,054.2m, down 15% from prior year. Pre-tax profits (before goodwill and exceptional items) of £263.2, down 31%. Diluted EPS (before goodwill and exceptional items) of 22.2p, down 30% from prior year. Funds under management
Slide 6: Financial Review
AMVESCAP Financial Review
Slide 7: Group Profit & Loss Account
Group Profit & Loss Account in thousands Three Months Ended Sept 30, 2002 2001 Revenues £307,479 £387,550 Expenses: Operating (224,343) (264,466) Exceptional -- (24,433) Goodwill amortization (36,800) (35,566) Operating profit 46,336 63,085 Investment income 654 858 Interest expense (13,128) (13,814
Slide 8: Group Profit & Loss Account
Group Profit & Loss Account in thousands Nine Months Ended Sept 30, 2002 2001 Revenues £1,054,164 £1,241,102 Expenses: Operating (758,065) (824,438) Exceptional (20,067) (49,685) Goodwill amortization (110,488) (100,604) Operating profit 165,544 266,375 Investment income 7,466 6,723 Interest expense
Slide 9: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2002 2002 Q3 Q2 % change Revenues £ 307,479 £ 368,936 -17% Operating expenses 224,343 260,821 -14% Operating profit 83,136 108,115 -23% Operating margin 27.0% 29.3% -8% EBITDA 98,781 123,911 -20% EPS - diluted 6.0p 8.0p -25% EBITDA per share - diluted 12.
Slide 10: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2002 2001 Q3 Q3 % change Revenues £ 307,479 £ 387,550 -21% Operating expenses 224,343 264,466 -15% Operating profit 83,136 123,084 -32% Operating margin 27.0% 31.8% -15% EBITDA 98,781 140,898 -30% EPS - diluted 6.0p 9.1p -34% EBITDA per share - diluted 12
Slide 11: Operating Profit – Nine Months 2002 V. 2001
Operating Profit – Nine Months 2002 V. 2001 (Decrease)/ in thousands 2002 2001 Increase Managed Products £ 257,468 £ 339,523 £ (82,055) INVESCO Institutional 39,871 39,915 (44) INVESCO Global 29,440 64,622 (35,182) INVESCO Retirement 2,404 5,319 (2,915) Private Wealth Management 1,378 1,507 (129) Ne
Slide 12: Funds Under Management - Q3 2002
Funds Under Management - Q3 2002 in billions Managed Products INVESCO INVESCO Private Total AIM INVESCO Inst Global Wealth June 30, 2002 $364.0 $158.7 $24.3 $110.6 $61.1 $9.3 Market gains/(losses) (33.8) (13.6) (3.7) (8.0) (7.2) (1.3) Net new/(lost) business (3.6) (2.3) (0.8) (0.3) (0.3) 0.1 Change
Slide 13: Funds Under Management - YTD 2002
Funds Under Management - YTD 2002 in billions Managed Products INVESCO INVESCO Private Total AIM INVESCO Inst Global Wealth December 31, 2002 $397.9 $179.8 $31.4 $116.8 $60.0 $9.9 Market gains/(losses) (60.2) (27.3) (8.9) (12.0) (10.2) (1.8) Net new/(lost) business (7.0) (2.7) (2.4) (2.6) 0.7 -- Cha
Slide 14: Balance Sheet
Balance Sheet in thousands Sept 30, 2002 Dec 31, 2001 Fixed assets Goodwill £2,579,488 £2,693,659 Investments 230,428 166,036 Tangible assets 190,121 209,370 3,000,037 3,069,065 Current assets Debtors 530,495 576,447 Investments 21,352 33,116 Cash 207,899 175,902 759,746 785,465 Creditors (805,061)
Slide 15: Group Cash Flow
Group Cash Flow in thousands Nine Months Ended Sept 30, Sept 30, 2002 2001 Operating profit £163,593 £256,578 Amortization and depreciation 155,951 151,815 Change in debtors, creditors, and other 104,532 75,034 Net cash inflow from operating activities 454,076 483,427 Banking and insurance activitie
Slide 16: Analysis Of Net Debt
Analysis Of Net Debt in thousands September 30, 2002 December 31, 2001 (Decrease)/Increase £ $ £ $ £ $ Senior notes ($250m) 159,236 250,000 172,414 250,000 (13,178) - Senior notes ($700m) 445,860 700,000 482,759 700,000 (36,899) - Credit facility 102,953 161,637 106,919 155,032 (3,966) 6,605 Equity
Slide 17: Average Shares Outstanding
Average Shares Outstanding in thousands Sept 30, June 30, Dec 31, 2002 2002 2001 Ordinary shares 772,192 772,906 763,977 Exchangeable shares 39,130 39,304 41,084 Shares outstanding 811,322 812,210 805,061 Shares reserved for: Options 11,261 15,104 24,922 Total shares 822,583 827,314 829,983 17
Slide 18: Headcount
Headcount Sept 30, June 30, Dec 31, 2002 2002 2001 Managed Products 3,983 4,087 4,346 INVESCO Institutional 841 853 868 INVESCO Global 2,225 2,245 2,334 INVESCO Retirement 565 563 561 Private Wealth 221 238 252 New Business 79 78 76 Corporate 79 79 82 7,993 8,143 8,519 18
Slide 19: US GAAP Reconciliation (Profit)
US GAAP Reconciliation (Profit) in thousands Nine Months Ended Sept 30, 2001 2001 Net profit under UK GAAP £ 57,953 £ 131,284 US GAAP adjustments: Acquisition accounting 102,174 (20,897) Redundancy and reorganizations 10,783 - Taxation (9,393) (37,285) Other 2,794 2,163 Net income under US GAAP £ 16
Slide 20: US GAAP Reconciliation (Equity)
US GAAP Reconciliation (Equity) in thousands Sept 30, 2002 Dec 31, 2001 Shareholders' funds under UK GAAP £ 2,356,554 £ 2,281,464 US GAAP adjustments: Acquisition accounting 1,040,662 984,436 Redundancy and reorganizations 10,783 - Treasury stock (223,081) (186,134) Dividends - 52,708 Other (15,765)
Slide 21: 2002 Third Quarter Results
AMVESCAP 2002 Third Quarter Results