Impax Asset Management Group plc · LSE:IPX
Impax Asset Management — H1 2016 Earnings Presentation
33 slides from Impax Asset Management's earnings presentation, May 2016
Slide 1: Impax Asset Management Group plc Interim results six months to 31 March 2016
Impax Asset Management Group plc Interim results for the six months to 31 March 2016 CLEAR INVESTMENT
Slide 2: Agenda
Agenda Impax overview H1 2016 business update Ian Simm Chief Executive H1 2016 financial update and outlook Q&A Charlie Ridge Chief Financial Officer CLEAR INVESTMENT 2
Slide 3: Part 1 – Impax overview
Part 1 –Impax overview CLEAR INVESTMENT 3
Slide 4: Impax overview
Impax overview ASSETS UNDER MANAGEMENT AND ADVICE1 Dedicated to environmental markets since £3.2bn Listed Equities 1998 £335m Renewable £3.6bn Energy Infrastructure Global institutional client base AUM £22m Sustainable Established sector thought leaders Property Offices in London, Hong Kong,
Slide 5: Extensive expertise
Extensive expertise BOARD MEMBERS Keith Ian Falconer Simm Diverse experience across global investment Chairman Chief Executive management, private equity and investment Lindsey Sally Brace Martinez Bridgeland consultancy with deep expertise in governance Guy Vincent and risk management de Froment
Slide 6: IPX shareholder register: significant staff ownership
IPX shareholder register Significant staff ownership BNP Paribas Investment Partners 25% Free float 38% Employee ownership 37%1 Total IPX ordinary shares 127.7m Employee and Trust holdings 47.2m (37%) 17.8m ESOP and RSS awards granted (equivalent to 14% IPX shares) of which 6.4m have vested .
Slide 7: Resource Efficiency and Environmental Markets: FTSE classification
Resource Efficiency and Environmental Markets: FTSE classification Energy Water Energy Efficiency Alternative Energy Water Pollution Control Infrastructure & ■ Power Network ■ Developers & IPPs Technologies ■ Pollution Control ■ Industrials ■ Solar Solutions ■ Infrastructure ■ Buildings ■ Wind ■ Tes
Slide 8: Impax investment universe is growing rapidly
Impax investment universe is growing rapidly Large universe of growing companies NUMBER OF COMPANIES $4.1 T in Market Cap 1,500 400 RO business exposure: Diverse range of opportunities 20-50% >50% Cyclical 1,100 Defensive Special Situations Higher Expected Earnings Growth 8% forward EPS grow
Slide 9: Client demand: several possible roles for an Impax strategy
Client demand: several possible roles for an Impax strategy IMPAX STRATEGIES INTEGRATE WELL WITHIN MANY ASSET CATEGORIES Global Equities Natural Resources Unconstrained Resource demand Highly differentiated Resource scarcity Thematic Resource efficiency Opportunistic ESG/SRI Investment
Slide 10: Global distribution capabilities
Global distribution capabilities Combination of direct and third party sales UK / Ireland IEM plc Europe BNP Paribas UCITS Platform North America ASN Bank PaxWorld London Delaware funds platform Asia Pacific Portland BNP Paribas in Hong Kong New York and Australia Hong Kong Impax office CLEAR INVEST
Slide 11: Part 2 – H1 2016 business update
Part 2 – H1 2016 business update CLEAR INVESTMENT 11
Slide 12: H1: Strong inflows and investment performance
H1: Strong inflows and investment performance AUM up 26% over six months to a new peak of £3.56bn Net inflows of £300m All listed equity strategies outperformed MSCI ACWI Interim dividend increased by 25% to 0.5 pence per share Solid progress in discussions with investors on raising new mo
Slide 13: Financial performance (six months to March 2016)
Financial performance (six months to 31 March 2016) FINANCIAL PERFORMANCE H1 2016 H2 2015 H1 2015 2015 AUM at period end1 £3.6bn £2.8bn £3.1bn £2.8bn Revenue £9.4m £9.3m £10.4m £19.7m Operating earnings2 £1.6m £0.8m £2.3m £3.1m Profit/(loss) before tax £2.1m £3.2m £1.9m £5.1m Diluted earnings per sh
Slide 14: AUM attained significant new peak
AUM attained significant new peak 1998 15 1999 20 Phase 1: 2000 39 Establishing the business 2001 38 2002 55 2003 66 2004 69 2005 214 Phase 2: 2006 429 Scale up to critical mass 2007 982 2008 1099 2009 1265 2010 1823 Phase 3: 2011 1896 Consolidation & investment 2012 1828 2013 2197 2014 2755 Phase 4
Slide 15: Catalysts for sustained long term growth
Catalysts for sustained long term growth Paris Climate Agreement: China: provides clear long term renewing commitment to framework and direction for pollution control with huge investors investment detailed in 13th Five Year Plan Water stress: 75% of California Increasing incidence of experiencing s
Slide 16: Broad range of strategies with significant capacity
Broad range of strategies with significant capacity LISTED EQUITIES INCEPTION DATE AUM1 REAL ASSETS INCEPTION DATE AUM1 Impax New Energy Specialists Mar 2002 £1.2bn Investors LP 2005 £77m Established Leaders Mar 2008 £650m Impax New Energy 2010 £258m Investors II LP Water Jan 2009 £1.3bn Impax Clima
Slide 17: Listed Equities
Listed Equities Leaders: now available to UK investors Specialists: significant new US mandates Food & Agriculture: AUM now at critical mass Water: BNPP launched GBP share class in response to UK investor demand Global Equity: seeded, building track record and significant investor interest
Slide 18: Listed Equities: strong long term investment performance
Listed Equities: strong long term investment performance Annualised performance to EPS growth 1 Year 3 Years 5 Years 10 Years PE ratio1 31.03.2016 in GBP (%) (%)1 Specialists 7.6 10.6 6.7 6.8 12.8 16.7x FTSE ET2 Index -3.3 11.6 2.0 2.9 12.7 16.8x Leaders 2.2 9.0 8.5 - 9.3 16.0x - FTSE EOAS Index -0.
Slide 19: AUM growth in Europe and North America
AUM growth in Europe and North America Breakdown by client domicile (£m) Principal funds/partners 614 Impax Environmental Markets plc UK/Ireland Irish UCITS Platform 610 1,647 BNP Paribas Investment Partners EMEA ASN Bank 2,067 53 BNP Paribas Investment Partners Asia Pacific DIAM 57 353 Delaware pri
Slide 20: Breakdown of AUM increase (listed equities)
Breakdown of AUM increase (listed equities) “IMPAX LABEL” FUNDS (£m) THIRD PARTY FUNDS/ACCOUNTS (£m) 31 March 2016 600 31 March 2016 2,604 Market movement 83 Market movement 331 Inflows 53 Inflows 536 Outflows (30) Outflows (258) 30 September 30 September 2015 494 1,995 2015 Market movement (55) Mar
Slide 21: Private Equity Infrastructure
Private Equity Infrastructure NEF ll: planned realisation of operating assets Successful sales of 338 MW wind assets in France and Germany, Finland and Ireland Fund on track to meet investor expectations Fundraising plans well advanced EIB has approval for commitment >€50m BNP Paribas (place
Slide 22: Sustainable Property
Sustainable Property Paris Climate Agreement a strong catalyst for property sector where demand increasingly driven by stricter regulation Plan to let and sell remaining asset in Fund I progressing Many investors in UK property awaiting the outcome of EU referendum Discussions with cornersto
Slide 23: Part 3 – H1 2016 financial update
Part 3 – H1 2016 financial update CLEAR INVESTMENT 23
Slide 24: Financial highlights: Operating performance
Financial highlights Operating performance REVENUE (£m) OPERATING COSTS (£m) OPERATING EARNINGS (£m) H1 2016 9.4 H1 H1 2016 5.6 2.3 7.9 H1 2016 1.6 2016 Private equity/ financing fees (0.1) H2 H2 2015 6.3 2.2 8.5 H2 2015 0.8 2016 2015 Listed equity flows and 0.2 23% performance 2.4 H1 5.9 2.3 H1 201
Slide 25: Financial highlights (2): Earnings and dividends
Financial highlights (2) Earnings and dividends DILUTED EPS (p) DIVIDEND (p) H1 2016 H1 2016 1.35 2016 0.50 Effect of shares bought back and 2015 0.40 1.20 1.60 0.50 Interim dilution 0.01 Tax adjustments 2014 0.30 1.10 1.40 Final Tax adjustments 0.49 2013 0.90 Special Prior year NIC release due to E
Slide 26: Financial highlights (3): Cash and investments
Financial highlights (3) Cash and investments INVESTMENTS1 (£m) CASH RESERVES (£m) CASH RESERVE ANALYSIS (£m) 31 Mar 2016 13.0 31 Mar 2016 31 March 13.0 7.9 2.4 10.3 2016 Investment hedges and (0.7) treasury income Risk buffer (4.9) Mark to Working capital 1.2 1.0 market "Available" cash “Available
Slide 27: Financial highlights (4): Balance sheet
Financial highlights (4) Balance sheet CURRENT ASSETS (£m) SHARE MANAGEMENT (m) "Available assets” Assets" 25.0 Shares in issue 127.7 Fully diluted “Available Net dilution of 14.8 Net premium on full option remaining options exercise 6.3 Averaging impact (1.4) "Diluted "Avaliableassets” Diluted “Ava
Slide 28: Milestones/Prospects
Milestones/Prospects High growth global equities Attractive investment skills/strategies An acknowledged leader internationally Strong investment performance Potential for further Stable, expert team scaling 4 scalable strategies at critical mass; 3 more to be scaled Infrastructure/team
Slide 29: Important information
Important information This document has been prepared by Impax Asset Management Group plc and approved by Impax Asset Management Limited and Impax Asset Management (AIFM) Limited (“Impax”, authorised and regulated by the Financial Conduct Authority). Both companies are wholly owned subsidiaries of I
Slide 30: Appendix
Appendix CLEAR INVESTMENT 30
Slide 31: Income statement
Income statement 6 months 6 months 6 months Year ended ended ended ended March 2016 Sept 2015 March 2015 2015 £'000 £'000 £'000 £'000 Revenue 9,434 9,304 10,422 19,726 Operating costs (7,871) (8,474) (8,142) (16,616) Operating earnings 1,563 830 2,280 3,110 Operating margin 16.6% 8.9% 21.9% 15.8% Cr
Slide 32: Balance sheet
Balance sheet 31 Mar 2016 30 Sep 2015 31 Mar 2015 £'000 £'000 £'000 Goodwill and intangibles 1,736 1,754 1,720 Other non-current assets 161 201 195 1,897 1,955 1,915 Cash and cash equivalents 13,498 19,517 12,756 Current asset investments 10,837 7,419 11,774 Other current assets 5,314 4,980 6,734 To
Slide 33: Impax investments
Impax investments Investments¹ Theme Principal funds/investee % of Fund AUM Comments (£m) Impax Food and Agriculture Food and agriculture 2.6 95% Fund Impax Environmental Leaders 3.3 86% Leaders Impax Global Equities Global equities 2.0 99% Opportunities Fund Impax New Energy Investors 0.6 4% Commit
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