Polar Capital Holdings Plc · LSE:POLR

Polar Capital — FY2010 Earnings Presentation

18 slides from Polar Capital's earnings presentation, June 2010

  1. Slide 1: Results Presentation for Year Ending 31 March 2010

    POLAR CAPITAL HOLDINGS PLC Results Presentation For Year Ending 31 March 2010 Tim Woolley (CEO) John Mansell (COO) June 2010

  2. Slide 2: Table of Contents

    Table of Contents Section I  Business Review Section II  Financial Review POLAR CAPITAL HOLDINGS PLC 1

  3. Slide 3: Business Review

    BUSINESS REVIEW POLAR CAPITAL HOLDINGS PLC 2

  4. Slide 4: Polar Capital Overview

    Polar Capital Overview As at 31 March 2010 Polar Capital was Total Assets established in 2001 Ownership Under Management Funds and has $2.5bn XL $2.53bn AUM, with 53 11% 2 funds employees. P ol a r C a l e doni a Technology Ben Rogoff C a pi t a l 15% Nick Evans USD815m 50% Fr e e Fl oa t 24% Platfo

  5. Slide 5: Analysis of Assets Under Management

    Analysis of Assets Under Management As at 31 March 2010 AuM split by strategy Investor Mix (by Geography) Eur ope Uni ted States 23% 16% Hedge Funds 38% RoW 3% Long Onl y 62% Uni ted Ki ngdom 58% AuM split by business unit Investor Mix Healt hcare UK 3% 9% Seed & Other Private Banks Japan 11% 12% 24

  6. Slide 6: Overview of Polar Capital: AUM flows

    Overview of Polar Capital AUM flows AUM at start of period: 31 March 2009 $1.48bn Gross outflows quarter 1 [long 119 hedge 96] $(215)m quarter 2 [long 17 hedge 31] $(48)m quarter 3 [long 28 hedge 27] $(55)m quarter 4 [long 61 hedge 41] $(102)m $(420)m Gross inflows quarter 1 [long 43 hedge 35] $78m

  7. Slide 7: Fund Performance

    Fund Performance at 31 May 2010 Fund Size 31 Launch Performance Performance Index 2009 YTD* May 2010 Date 2009 YTD* $m Hedge Fund Strategies UK** 213 Nov 2001 9.21% -1.11% European Conviction 107 Mar 2006 8.88% -1.66% Credit Suisse Tremont Long-Short 19.47% -1.17% European Forager 379 Aug 2003 24.90

  8. Slide 8: Performance – Long Only Funds

    Performance – Long Only Funds at 31 May 2010 UCITS FUNDS – LIPPER PEER GROUP QUARTILE RANKINGS 3 months 6 months 1 year 3 years 5 years Healthcare Opportunities 2 2 2 N/A N/A Japan 1 1 1 1 1 Global Technology 1 1 1 2 2 POLAR CAPITAL TECHNOLOGY TRUST Cumulative Performance (%) to 28/05/2010 1 month 3

  9. Slide 9: Capacity of Funds

    Capacity of Funds Fund Size Fund Size Total Capacity 31 Mar 10 31 May 10 in Current Funds Hedge Fund Strategies UK* $206m $213m $1.00bn European Conviction $118m $107m $1.00bn European Forager $386m $379m $0.50bn Discovery $245m $239m $2.00bn Long Only Strategies Technology Trust $597m $563m $0.75bn

  10. Slide 10: Strategy

    Strategy Positioning  Highly differentiated performance of funds  Balance of long and hedge fund product  Impressive asset gathering from invigorated sales force  Strong operating infrastructure positions the business well for changes in the operating and regulatory environment  Strong balance

  11. Slide 11: Strategy: Some Signs of Success

    Strategy Some Signs of Success Continue to Invest Further In Sales and Marketing  Added experienced sales person for London market  Added additional sales support person  Adding another experienced sales person for UK regions – joining in August Attract AUM into Current Products  Net inflows for

  12. Slide 12: Financial Review

    FINANCIAL REVIEW POLAR CAPITAL HOLDINGS PLC 11

  13. Slide 13: Financial Review: Highlights

    Financial Review Highlights  AUM − AUM at 31 March 2010 up 71% to $2.5bn (2009: $1.5bn)  Profitability − Pre-tax (pre SBP) profitability £3.7m (2009: £11.1m) − Pre-tax (post SBP) profitability £3.1m (2009: £12.1m)  EPS and Dividend − Adjusted diluted EPS down to 3.8p (2009: 10p) Adjustment exclud

  14. Slide 14: Financial Review: Costs

    Financial Review Costs 2008 2009 2010  £4.3m decrease in core £m £m £m operating costs  £0.6m decrease in pre- performance fee compensation. Salaries and bonuses 8.1 7.7 8.1  £3.7m reduction In other Core distributions 2.2 2.2 1.6 operating costs is a function of: Other staff costs 0.9 0.8 0.4 a)

  15. Slide 15: Financial Review: Profitability

    Financial Review Profitability 2008 2009 2010 £m £m £m Average AUM $3.65bn $2.67bn $1.93bn Core operating profit 6.0 1.3 0.0 Performance fee profit 8.0 8.9 2.5 Interest and similar income 1.7 0.9 1.2 PBT pre IFRS S.B.P. £15.7m £11.1m £3.7m Share based payments (“S.B.P”) (1.2) 1.0 (0.6) Statutory PBT

  16. Slide 16: Financial Review: Dividend

    Financial Review Dividend  Dividends paid in the year 4.5p (2009: 4.5p).  Dividend not fully covered but offset by cautious approach in 2009.  Progressive dividend policy.  Quantum of future dividends will take account of both current and anticipated profits as well as the strength of the balanc

  17. Slide 17: Summary

    Summary Well positioned in challenging times Strong  Consistent and impressive bull and bear market performance. Performance  Across long and hedge strategies. Fund  Significant potential for further growth. Capacity  Total current capacity in the funds of c.$7.25 billion of which only $2.5 bill

  18. Slide 18: Polar Capital Disclaimer

    Polar Capital Disclaimer 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 is for the sole use of those atte

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