Coronation Fund Managers Limited · JSE:CML
Coronation Fund Managers — H1 2011 Earnings Presentation
30 slides from Coronation Fund Managers's earnings presentation, May 17, 2011
Slide 1: Reviewed Interim Results
March 2011 Reviewed Interim Results 17 May 2011 1
Slide 2: Agenda
Agenda Financial highlights Overview of company Financial results Business review Retail Institutional International Transformation Other 2
Slide 3: Market movements
Market movements 31 March 2011 3 months 6 months 12 months Economic group % % % All Share 1.1 10.7 15.2 All Share 0.27 9.33 12.02 (Capital Return) All Share 0.85 1.36 3.13 (Dividend Return) Resource 20 2.4 19.3 12.6 Small Cap -5.3 5.4 11.9 Industrials -8.6 -0.9 6.7 Financials 0.7 0.6 6.9 3
Slide 4: Financial Highlights
CORONATION & FUND MANAGERS Financial Highlights
Slide 5: Financial highlights
Financial highlights AUM R231bn +31% (28%*) Net flows of R13.9bn in H1 Headline earnings 89.2 cps +25% Headline earnings (diluted) 81.7 cps +26% Dividend 80.0 cps +57% * LFL (removing effect of restatement) 5
Slide 6: Financial highlights (Rm)
Financial highlights (Rm) Revenue (from fund management) 865 +32% Profit (from fund management) 440 +35% PAT 299 +32% Cashflow 228 - 11% 6
Slide 7: Company Overview
CORONATION & FUND MANAGERS Company Overview
Slide 8: Company structure
Company structure at 31 March 2011 C o ronation Fund Managers Ltd 90% C o ronation Investment 10% Th e Imvula Trust Ma nagement (Pty) Ltd 100% 100% 100% 100% 100% C o ronation C o ronation Life C o ronation Asset C o ronation Investment Management Company Assurance C FM (Isle of Man) Ltd Ma nagement
Slide 9: Assets Under Management (Rbn)
Assets Under Management (Rbn) 2003 – 31 March 2011 250 231 203 200 176 155 150 134 125 101 100 82 64 54 50 - 2003 2004 2005 2006 2007 2008 2009 2010 2010 2011 Sept Sept Sept Sept Sept Sept Sept Mar Sept Mar Domestic: Equity 60.3%; Fixed Interest and Cash 22.7% Foreign: Equity 11.9%; Fixed Interest a
Slide 10: Financial Results
CORONATION & FUND MANAGERS Financial Results 10
Slide 11: Earnings
Earnings Change March March % 2011 2010 Attributable earnings (R'000) 33 298,842 223,997 EPS (cents) 33 94.9 71.2 Headline earnings (R'000) 25 280,711 223,997 HEPS (cents) 25 89.2 71.2 Diluted HEPS (c ents) 26 81.7 64.8 Weighted average shares in issue - 31 March 0 314,819,192 314,646,591 Actual sha
Slide 12: Earnings
Earnings Change March March % 2011 2010 Cost to income 1.3 50.6 51.2 Cost to income (excluding collection fees) 2.8 48.0 49.3 EBITDA (R'000) 34.1 445,843 332,460 Market capitalisation (R'000) 82.8 5,603,782 3,066,339 Share price @ 31 March (Rands) 82.8 17.80 9.74 Price earnings per share* 45.9 10.0
Slide 13: Total net fee
Total net fee as at 31 March 2011 1.20% 1.00% 0.97% 0.87% 0.80% 0.75% 0.69% 0.70% 0.70% 0.69% 0.68% 0.68% 0.58% 0.59% 0.60% 0.56% 0.52% 0.40% 0.20% 0.00% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010/H1* 2010 2011/H1* * H1 figures – annualised revenue 13
Slide 14: Cost comparison
Cost comparison March March Change 2011 2010 % R'000 R'000 Fixed operational costs (20.8) 136,826 113,225 Variable costs (42.6) 306,903 215,193 IFRS 2 78.5 2,061 9,588 TOTAL OPERATIONAL COSTS (31.9) 445,790 338,006 Other costs (Interest expense*) 39.8 3,160 5,250 TOTAL COSTS (30.8) 448,950 343,256 *
Slide 15: Business Overview Institutional
Business Overview Institutional 15
Slide 16: Performance
Performance Alexander Forbes Global Large Manager Watch 5 years ending 31 March 2011 Investec Asset Management 14.29% Coronation 13.56% Allan Gray 13.08% Prudential Global Balanced 11.98% Foord Asset Management 11.86% RE:CM 11.35% MEDIAN 11.08% OMIGSA Macro Strategy 10.72% RMBAM 10.04% SIM Global Un
Slide 17: Performance
Performance Alexander Forbes SA Large Manager Watch 5 years ending 31 March 2011 Investec Asset Management 15.08% Coronation 14.68% Allan Gray 14.62% Prudential Domestic Balanced 13.35% MEDIAN 13.00% Oasis 12.63% Foord Segregated Domestic 12.62% OMIGSA Macro Strategy 11.85% RMBAM 11.79% Metropolitan
Slide 18: Business Overview Retail
CORONATION & FUND MANAGERS Business Overview Retail 18
Slide 19: Business performance
Business performance H1 FY2011 Exceptional market share gains continue From 6.5% to 8.7% of long-term funds over past 12 months to 31 March 2011 R10bn net inflows for the first half of the 2011 financial year, compared to R11bn for the 2010 financial year Highest net cash flows into long-term funds
Slide 20: Fund performance
Fund performance By franchise as at 31 March 2011 Continued long-term outperformance across our fund range and over meaningful time periods Domestic equity Both Top 20 and Equity funds remain top quartile over all meaningful periods AA Long-Term Growth Balanced Plus Fund in top 3 of category over 3,
Slide 21: Change in AUM
Change in AUM By category for the past 6 months to 31 March 2011 Domestic equity: from R8.9bn to R11.2bn (70bps market share gain to 5.5%) Attracted 32% of available cash flows AA Long-Term Growth: from R12.2bn to R16.2bn (120bps market share gain to 11.8%) Attracted 24% of available cash flows AA I
Slide 22: International
CORONATION & FUND MANAGERS International 22
Slide 23: UK and Ireland
UK and Ireland AUM up from $1.97bn (Sept 2010) to $2.55bn (March 2011) AUM increase attributable to subscriptions Investment performance is very pleasing with all funds ahead of benchmarks 23
Slide 24: Africa
Africa Africa portfolios delivering excellent performance The Coronation Africa Frontiers Fund has outperformed the FTSE/JSE Africa Top 30 Ex SA Index by 30.1% p.a. since inception in October 2008 Botswana AUM flat at BWP2.3bn Excellent relative performance Namibia AUM up from NAM$8.9bn (Sept 2010)
Slide 25: Emerging Markets
Emerging Markets Excellent relative performance of the institutional Coronation Global Emerging Markets Fund Three-year track record will be achieved in July 2011 7.8% annualised outperformance of MSCI Emerging Markets Index since inception Great relative performance position versus GEM peers – 2/42
Slide 26: Transformation
CORONATION & FUND MANAGERS Transformation 26
Slide 27: Transformation
Transformation Rated as Level IV contributor in terms of DTI codes Staff Ownership Scheme (Imvula) Outstanding debt reduced by 71% since inception in April 2005 Positive equity Enterprise development Providing business support to selected BEE stockbrokers Second 3-year term in process 27
Slide 28: Other
CORONATION ®& FUND MANAGERS Other 28
Slide 29: Initiatives
Initiatives PPS Investments Growing AUM strongly Gaining ongoing traction among PPS members 29
Slide 30: Thank you
CORONATION & FUND MANAGERS Thank you
Coronation Fund Managers — H1 2011 Earnings Presentation on 6ix