Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — Q3 2001 Earnings Presentation
20 slides from Invesco's earnings presentation, Oct 25, 2001
Slide 1: 2001 Third Quarter Results
AMVESCAP Helping people worldwide build their financial security 2001 Third Quarter Results Charles W. Brady, Executive Chairman Robert F. McCullough, Chief Financial Officer October 25, 2001
Slide 2: Third Quarter Summary
Third Quarter Summary Quarter of significant challenges to global economy, industry and our Company. Continued emphasis on cost controls resulting in third straight quarter of reduced expense levels. Gross sales of $20.6b compared to $28.0b in 2000 and $20.7b in Q2. Completed Pell Rudman, Gr
Slide 3: Financial Summary: Three Months Ended September 30, 2001
Financial Summary Three Months Ended September 30, 2001 Revenues of £387.6m, down £58.4m from 2000 Pre-tax profits (before goodwill amortization and exceptional items) of £110.1m, down £49.3m (31%) Exceptional items of £24.4m (1.9p per share) to cover integration of acquired businesses EPS (
Slide 4: Financial Summary: Nine Months Ended September 30, 2001
Financial Summary Nine Months Ended September 30, 2001 Revenues of £1,241.1m, up £40.9m from 2000 Pre-tax profits (before goodwill amortization and exceptional items) of £380.8m, down £34.2m (8%) Exceptional items of £49.7m for acquisition integrations EPS (before goodwill amortization and e
Slide 5: Recent Developments
Recent Developments FUM at October 19, 2001 were approximately $385b reflecting improved global market levels. Positive retail net sales in October. Fundamentals of the business are sound. f Headcount down from March 2001 levels due to attrition and reduced seasonal labor. f Level of activity
Slide 6: Financial Review
AMVESCAP Financial Review
Slide 7: Group Profit & Loss Account
Group Profit & Loss Account in thousands Three Months Ended Sept 30, 2001 Ordinary Exceptional activities items Total 2000 Revenues £ 387,550 £ - £ 387,550 £ 445,958 Operating expenses (264,466) (24,433) (288,899) (303,074) Operating profit before amortization 123,084 (24,433) 98,651 142,884 Profit
Slide 8: Group Profit & Loss Account
Group Profit & Loss Account in thousands Nine Months Ended Sept 30, 2001 Ordinary Exceptional activities items Total 2000 Revenues £ 1,241,102 £ - £ 1,241,102 £ 1,200,211 Operating expenses (824,438) (49,685) (874,123) (789,036) Operating profit before amortization 416,664 (49,685) 366,979 411,175 P
Slide 9: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2001 2001 Q3 Q2 % change Revenues £ 387,550 £ 426,275 (9)% Operating expenses 264,466 278,955 (5)% Operating profit 123,084 147,320 (16)% Operating margin 31.8% 34.6% (8)% Pre-tax profit 110,128 135,698 (19)% EBITDA 140,898 168,244 (16)% EPS - diluted 9.1
Slide 10: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2001 2000 Q3 Q3 % change Revenues £ 387,550 £ 445,958 (13)% Operating expenses 264,466 276,244 (4)% Operating profit 123,084 169,714 (27)% Operating margin 31.8% 38.1% (17)% Pre-tax profit 110,128 159,422 (31)% EBITDA 140,898 189,627 (26)% EPS - diluted 9
Slide 11: Segmental Analysis
Segmental Analysis in thousands Nine Months Ended Sept 30, 2001 Revenues Expenses Oper. Profit Managed Products £ 760,252 £ (420,729) £ 339,523 INVESCO Institutional 157,715 (117,800) 39,915 INVESCO Global 273,670 (207,821) 65,849 INVESCO Retirement 43,186 (37,867) 5,319 Private Wealth Management 4,
Slide 12: Operating Profit – 2000 V. 2001
Operating Profit – 2000 V. 2001 (Decrease)/ in thousands 2001 2000 Increase Managed Products £ 339,523 £ 382,060 £ (42,537) INVESCO Institutional 39,915 41,606 (1,691) INVESCO Global 65,849 66,181 (332) INVESCO Retirement 5,319 2,871 2,448 Private Wealth Management 280 - 280 New Business (7,494) (15
Slide 13: Funds Under Management - Q3 2001
Funds Under Management - Q3 2001 in billions Managed Products INVESCO Total AIM INVESCO Inst Global PWM June 30, 2001 $ 408.4 $ 193.2 $ 37.1 $ 113.9 $ 64.2 $ - Market gains/(loss) (46.8) (20.6) (8.4) (6.9) (10.3) (0.6) Acquisitions 10.2 - - 0.6 1.6 8.0 Net new (lost) business (2.6) (1.2) (1.1) 1.3 (
Slide 14: Funds Under Management - YTD 2001
Funds Under Management - YTD 2001 in billions Managed Products INVESCO Total AIM INVESCO Inst Global PWM December 31, 2000 $ 402.6 $ 193.2 $ 43.2 $ 99.6 $ 66.6 $ - Market gains/(loss) (77.8) (37.5) (15.9) (8.4) (15.4) (0.6) Acquisitions 32.4 - - 17.7 6.7 8.0 Net new (lost) business (0.5) 0.4 0.7 - (
Slide 15: Balance Sheet
Balance Sheet in thousands Sept 30, 2001 Dec 31, 2000 Fixed assets Goodwill £ 2,733,309 £ 2,375,542 Investments 177,470 152,521 Tangible assets 214,522 203,341 3,125,301 2,731,404 Current assets Debtors 644,904 686,101 Investments 104,089 124,311 Cash at bank and in hand 220,179 342,073 969,172 1,15
Slide 16: Group Cash Flow
Group Cash Flow in thousands Nine Months Ended Sept 30, 2001 Sept 30, 2000 Operating profit £ 266,375 £ 375,784 Amortization and depreciation 152,976 72,654 Change in debtors, creditors and other 79,353 8,844 Net cash inflow from operating activities 498,704 457,282 Banking and insurance activities
Slide 17: Analysis Of Net Debt
Analysis Of Net Debt in thousands September 30, 2001 December 31, 2000 (Decrease)/Increase £ $ £ $ £ $ Current Debt 14,114 20,748 15,293 22,787 (1,179) (2,039) Long-term Debt: Senior notes 443,474 650,000 444,201 650,000 (727) - Equity subordinated debentures 64,249 94,446 67,115 100,001 (2,866) (5,
Slide 18: US GAAP Reconciliation (Profit)
US GAAP Reconciliation (Profit) in thousands Nine Months Ended Sept 30, 2001 2000 Net profit under UK GAAP £ 126,699 £ 231,774 US GAAP adjustments: Acquisition accounting (20,897) (48,475) Taxation (32,700) (12,170) Other 2,163 508 Net income under US GAAP £ 75,265 £ 171,637 18
Slide 19: US GAAP Reconciliation (Equity)
US GAAP Reconciliation (Equity) in thousands Sept 30, 2001 Dec 31, 2000 Shareholders' funds under UK GAAP £ 2,276,399 £ 2,103,080 US GAAP adjustments: Acquisition accounting 998,787 1,020,052 Treasury stock (196,121) (168,292) Dividends - 47,813 Other 5,241 15,968 Shareholders' equity under US GAAP
Slide 20: 2001 Third Quarter Results
AMVESCAP 2001 Third Quarter Results