Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — H1 1999 Earnings Presentation
18 slides from Invesco's earnings presentation, 1999
Slide 1: 1999 Interim Results
1999 INTERIM RESULTS Charles W. Brady Robert F. McCullough
Slide 2: Half Year Highlights
HALF YEAR HIGHLIGHTS • Record financial results • Growth in activities of each operating unit • Interim dividend of 3.5p - 17% increase • Record new business for INVESCO Global • Strong net flows in Managed Products • Continued excellent investment performance • GT integration nearing completion 2
Slide 3: Financial Highlights - First Half 1999
FINANCIAL HIGHLIGHTS - FIRST HALF 1999 • Revenues of £500.1m • Pre-tax profits (before goodwill and exceptional item) of £145.8m, up £28.2m from 1998 • EPS (before goodwill and exceptional item) *Basic -- 15.4p, up 15% *Diluted -- 14.8p, up 19% • EBITDA of £199.5m • Funds under management of $295.9b
Slide 4: Financial Highlights - 2nd Quarter 1999
FINANCIAL HIGHLIGHTS - 2ND QUARTER 1999 • Revenues of £259.0m • Pre-tax profits (before goodwill and exceptional item) of £76.2m, up £14.5m from 1998 • EPS (before goodwill and exceptional item) *Basic -- 8.0p, up 16% *Diluted -- 7.7p, up 20% • EBITDA of £104.0m 4
Slide 5: Financial Review
FINANCIAL REVIEW Robert F. McCullough
Slide 6: Group Profit & Loss Account (Six Months)
GROUP PROFIT & LOSS ACCOUNT Six Months Ended 30 June in thousands 1999 1998 Revenues £ 500,080 £ 353,853 Operating expenses (336,103) (230,325) 163,977 123,528 Exceptional item - integration - (48,600) Goodwill amortisation (18,151) (2,856) Operating profit 145,826 72,072 Investment income 5,147 7,4
Slide 7: Group Profit & Loss Account (Three Months)
GROUP PROFIT & LOSS ACCOUNT Three Months Ended 30 June in thousands 1999 1998 Revenues £ 259,028 £ 191,778 Operating expenses (173,838) (125,138) 85,190 66,640 Exceptional item - integration - (48,600) Goodwill amortisation (9,011) (2,856) Operating profit 76,179 15,184 Investment income 2,363 4,970
Slide 8: EPS Comparisons
EPS COMPARISONS First Half 2nd Quarter 1999 1998 1999 1998 Earnings per ordinary share (before goodwill and exceptional item) -Basic 15.4p 13.4p 8.0p 6.9p -Diluted 14.8p 12.4p 7.7p 6.4p -Diluted per ADR at $1.58 $1.17 $1.03 $0.61 $0.53 -Diluted per ADR at $1.64 $1.21 $1.02 $0.63 $0.52 Earnings per o
Slide 9: Quarterly Financial Comparisons
QUARTERLY FINANCIAL COMPARISONS in thousands 1999 1999 Q2 Q1 % change Revenues £ 259,028 £ 241,052 7% Operating profit £ 85,190 £ 78,787 8% (before amortisation) Profit (before amortisation) £ 51,422 £ 47,020 9% EPS (before amortisation) -basic 8.0p 7.4p 8% -diluted 7.7p 7.1p 8% 9
Slide 10: Operating Profit
OPERATING PROFIT Managed U.S. INVESCO Products Institutional Global Corporate Operating Profit (£'000) Q2 - 1999 72,558 14,038 12,149 (13,555) Q1 - 1999 60,922 15,887 11,359 (9,381) 11,636 (1,849) 790 (4,174) Profit Margin Q2 - 1999 46.4% 34.0% 22.5% N/A Q1 - 1999 43.0% 37.2% 22.5% N/A 10
Slide 11: Segmental Analysis - First Half 1999
SEGMENTAL ANALYSIS - FIRST HALF 1999 in thousands Revenues Expenses Oper. Profit Managed Products £ 297,915 £ (164,435) £ 133,480 U.S. Institutional 84,009 (54,084) 29,925 INVESCO Global 104,298 (80,790) 23,508 Retirement and Benefit Services 13,858 (13,858) - Corporate - (22,936) (22,936) £ 500,080
Slide 12: Funds Under Management
FUNDS UNDER MANAGEMENT in billions Managed Products U.S. INVESCO Total AIM INVESCO Instit. Global RBS 31 March 1999 $ 280.6 $ 115.1 $ 24.3 $ 91.6 $ 43.2 $ 6.4 Market gains 15.0 5.5 1.6 4.8 2.7 0.4 Net new (lost) business 2.9 3.2 0.2 (1.8) 1.3 - Change in US Money Market Funds 0.6 0.6 - - - - Transfe
Slide 13: Funds Under Management
FUNDS UNDER MANAGEMENT in billions Managed Products U.S. INVESCO Total AIM INVESCO Instit. Global RBS 31 Dec 1998 $ 275.4 $ 111.6 $ 22.9 $ 93.9 $ 40.8 $ 6.2 Market gains 20.6 8.6 2.6 5.1 3.9 0.4 Net new (lost) business 3.7 3.9 0.6 (3.1) 2.1 0.2 Change in US Money Market Funds 0.3 0.3 - - - - Transfe
Slide 14: Balance Sheet
BALANCE SHEET in thousands 30 June 31 Dec 1999 1998 Fixed assets Tangible assets £ 96,639 £ 88,781 Investments 133,692 131,738 Goodwill 682,769 711,795 913,100 932,314 Current assets Debtors 660,546 479,381 Investments 73,076 79,469 Cash at bank and in hand 135,673 119,651 869,295 678,501 Creditors:
Slide 15: Analysis of Net Debt
ANALYSIS OF NET DEBT in thousands 30 June 1999 31 December 1998 Decrease/ (Increase) £ $ £ $ £ $ Current Debt 29,161 46,109 56,300 94,472 27,139 48,363 Long-term Debt 691,914 1,094,054 686,010 1,151,125 (5,904) 57,071 721,075 1,140,163 742,310 1,245,597 21,235 105,434 Cash (126,855) (200,583) (111,9
Slide 16: US GAAP Reconciliation (Profit)
US GAAP RECONCILIATION (PROFIT) in thousands Six Months Ended 30 June 1999 1998 Net profit under UK GAAP £ 80,291 £ 33,945 US GAAP adjustments: Acquisition accounting (39,139) 10,803 Taxation (10,271) (5,762) Other (1,011) 541 Net income under US GAAP £ 29,870 £ 39,527 16
Slide 17: US GAAP Reconciliation (Equity)
US GAAP RECONCILIATION (EQUITY) in thousands 30 June 1999 31 Dec 1998 Shareholders' funds under UK GAAP £ 367,127 £ 330,970 US GAAP adjustments: Acquisition accounting 1,042,786 1,022,254 Deferred taxation 355 (1,027) Treasury stock (124,129) (131,857) Dividends 22,425 31,694 Other 4,137 3,072 Share
Slide 18: Global Investment Services
AW AMVESCAP Global Investment Services