Polar Capital Holdings Plc · LSE:POLR
Polar Capital — H1 2012 Earnings Presentation
26 slides from Polar Capital's earnings presentation, December 2011
Slide 1: Interim Results Presentation
POLAR CAPITAL Interim Results Presentation Tim Woolley (CEO) John Mansell (COO) December 2011 This presentation is for one-on-one use with professional investors only
Slide 2: Contents
Contents POLAR CAPITAL Section I Introduction to Polar Capital Section II Business Review Section III Financial Review 2
Slide 3: Introduction to Polar Capital
POLAR CAPITAL Introduction to Polar Capital
Slide 4: Who We Are
POLAR Who We Are CAPITAL Polar Capital Holdings plc is a specialist investment management company offering professional and institutional investors a range of geographical and sector funds. The Company’s investment strategies have a fundamental research driven approach. The Company has long-only a
Slide 5: Philosophy
POLAR Philosophy CAPITAL Primacy of investment performance Institutional robustness across operational, compliance, risk and relationship management Diversified yet complementary set of funds with a focus on fundamental research driven strategies Culture which is flexible, entrepreneurial an
Slide 6: Overview
POLAR Overview CAPITAL Management Investment Teams Business Infrastructure Ownership Tim Woolley Technology Sales & Marketing 31% 45% CEO / Co-Founder 14% 10% Tom Bartlam Japan Operational Support Non Executive Chairman Polar Capital UK Risk Management XL John Mansell Caledonia Chief Operating Offic
Slide 7: Business Review
POLAR CAPITAL Business Review
Slide 8: Goals and Strategy
Goals and Strategy POLAR CAPITAL Goals To be a leading global investment management boutique To be a strong dependable partner to our clients offering them a range of interesting and differentiated investment products To maintain a robust operational infrastructure To maintain high levels of
Slide 9: AUM Flows
AUM Flows POLAR CAPITAL AUM at start of period: 31 March 2010 $2.53bn Gross inflows quarter 1 [long 324 hedge 127] $451m quarter 2 [long 190 hedge 33] $223m quarter 3 [long 328 hedge 59] $387m quarter 4 [long 529 hedge 27] $556m $1,617m Gross outflows quarter 1 [long 55 hedge 77] $(132)m quarter 2 [
Slide 10: Assets Under Management
Assets Under Management POLAR CAPITAL Analysis AUM Split by Strategy Investor Mix by Geography Other Europe 2.0% 22.3% UK 68.5% USA 7.1% AUM Split by Business Unit Investor Mix (404 Clients) Insurance Financials GEM Convertibles Company Asset Manager Private Wealth 11.2% Family Office 9.0% 2.9% 0.9%
Slide 11: Product Overview
POLAR Product Overview CAPITAL Long Only Hedge and Absolute Return UCITS Cayman Global Technology UK Japan European Forager Healthcare Opportunities European Conviction Asian Financials ALVA Global Convertible Financial Opportunities – May 2011 Ratio European Opportunities – October 2011 Financials
Slide 12: Investment Teams
Investment Teams POLAR CAPITAL The Original Vision Still Holds True Ten to Twelve World Class Investment Teams Pre 2010 2010 2011 2012 Technology Technology Technology Technology Japan Japan Japan Japan Europe Europe Europe Europe UK UK UK UK Healthcare Healthcare Healthcare Healthcare Financials Fi
Slide 13: Sales Organisation
Sales Organisation POLAR CAPITAL November 2009 CEO 1 2 3 4 5 Sales People 5 1 2 Sales Support 2 November 2010 CEO Head of UK Head of International Sales People 6 1 2 3 1 1 2 3 Sales Support 3 November 2011 CEO Head of UK Head of International Sales People 7 1 2 3 4? 1 2 3? 4? Marketing Manager Sales
Slide 14: Lipper Figures for UCITS Funds
Lipper Figures for UCITS Funds POLAR CAPITAL 30th November 2011 3 Months 6 Months 1 Year 3 Years 5 Years % Growth % Growth % Growth % Growth % Growth Fund to to to to to Universe Universe Universe Universe Universe Quartile Quartile Quartile Quartile Quartile Position / Position / Position / Positio
Slide 15: Hedge/Absolute Return Strategies
Hedge/Absolute Return Strategies POLAR CAPITAL 30th November 2011 Annualised returns Fund YTD 3 years 5 years Inception UK Absolute Return -12.67% -0.20% N/A -0.61% UK Hedge -14.31% -1.36% 1.27% 5.54% Forager 2.63% 12.76% 6.99% 11.49% Conviction 7.56% 6.06% 6.49% 7.01% ALVA 2.88% N/A N/A 5.31% 15 Pl
Slide 16: Polar Capital AUM
POLAR Polar Capital AUM CAPITAL Good Recovery Since Crisis US$ bn $5.0 $4.5 $4.4 $4.3 $4.0 $3.9 $3.9 $3.5 $3.5 $3.1 $3.0 $2.6 $2.5 $2.5 $2.2 $2.0 $1.9 $1.5 $1.5 $1.5 $1.0 $0.5 $0.0 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Nov-11 16 Please refer to the Important In
Slide 17: Financial Review
POLAR CAPITAL Financial Review
Slide 18: Financial Review: Highlights
Financial Review POLAR CAPITAL Highlights AUM – AUM at 30 September 2011 increased to $3.94bn from $3.86bn at March 2011 – AUM at 30 November 2011, up pleasing further 8.6% to $4.28bn Profitability for six months to September 2011 – Pre-tax (pre SBP) profits up to £4.8m (2010: £2.3m) EPS and D
Slide 19: Financial Review: Profitability
Financial Review POLAR CAPITAL Profitability 6 months 6 months Year to 6 months to Sep 10 to Mar 11 Mar 11 to Sep 11 Average AUM $2.7bn $3.6bn $3.2bn $4.2bn Core operating profit £1.7m £1.9m £3.6m £3.5m Performance fee profit £0.5m £5.2m £5.7m £1.5m Interest and similar income £0.1m £0.8m £0.9m £(0.
Slide 20: Financial Review: Costs
Financial Review POLAR CAPITAL Costs 6 months 6 months Year to 6 months to Sep 10 to Mar 11 Mar 11 to Sep 11 Salaries and bonuses £4.1m £4.8m £8.9m £5.0m Core distributions £1.6m £1.9m £3.5m £1.5m Other staff costs £0.0m £0.0m £0.0m £0.7m Core Compensation Costs £5.7m £6.7m £12.4m £7.2m Other operat
Slide 21: Financial Review: Other Operating Costs
Financial Review POLAR CAPITAL Other Operating Costs 6 months 6 months Year to 6 months to Sep 10 to Mar 11 Mar 11 to Sep 11 IT £0.9m £1.1m £2.0m £1.1m Rent and Rates £0.6m £0.5m £1.1m £0.6m Professional Fees £0.3m £0.4m £0.7m £0.4m Insurance £0.2m £0.2m £0.4m £0.2m Travel and Entertainment £0.3m £0
Slide 22: Financial Review: Dividend
Financial Review POLAR CAPITAL Dividend First dividend of 1.5p (2010: 1.5p) to be paid in January 2012 Dividend reflects: - Current run rate profitability of the Company - Confidence in Company’s prospects Traditionally there is a second dividend paid later in the year 22 Please refer to the Imp
Slide 23: Financial Review: Cash and Investments
Financial Review POLAR CAPITAL Cash and Investments March 2011 September 2011 £m £m Cash £19.2m £9.6m Available for sale investments Hedge fund investments £ 4.2m £ 4.0m Hedge fund seed £15.2m £14.7m Long only seed £ 7.1m £ 8.2m £26.5m £26.9m Long only protection and cash collateral £ 2.9m £ 5.7m £2
Slide 24: Shareholder Analysis at September 2011
Financial Review POLAR CAPITAL Shareholder Analysis at 30 September 2011 Holding Percentage Directors, Founders and Staff 32.4m 42% Caledonia 10.7m 14% XL 8.0m 10% EBT 2.1m 3% Blackrock 6.1m 8% Legal & General 2.7m 3% Cazenove 2.5m 3% Free Float = 31% Artemis 2.5m 3% Others 9.8m 13% Total Shares in
Slide 25: Summary
Summary POLAR CAPITAL Well Positioned in Challenging Times Strong Consistent and impressive bull and bear market performance. Performance Across long and hedge strategies. Significant potential for further growth. Fund Capacity Total current capacity in the funds of > $10 billion of which on
Slide 26: Important Information
Polar Capital Four Matthew Parker Street London SW1H 9NP House View This document has been produced based on Polar Capital research and analysis and represents our house view. All sources are Polar Capital unless otherwise stated. Important Information The information provided in this presentation i
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