Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — H1 2000 Earnings Presentation
22 slides from Invesco's earnings presentation, 2000
Slide 1: 2000 Interim Results
2000 INTERIM RESULTS Charles W. Brady Robert F. McCullough
Slide 2: Half Year Highlights
HALF YEAR HIGHLIGHTS • Record financial results • Strong net flows in Managed Products, both AIM and INVESCO • Continued strong investment performance • INVESCO Global operating profit exceeds all of 1999 • US Institutional gross sales of $7.2b, up 7% • Retirement Services assets under administratio
Slide 3: Financial Highlights - First Half 2000
FINANCIAL HIGHLIGHTS - FIRST HALF 2000 • Revenues of £754.3m, up £254.2m from 1999 • Pre-tax profits (before goodwill) of £255.6m, up £109.8m (75%) • EPS (before goodwill) *Basic -- 26.7p, up 73% *Diluted -- 25.6p, up 73% • EBITDA of £299.0m, up £99.5m (50%) • Funds under management of $389.0b (£257
Slide 4: Financial Highlights - 2nd Quarter 2000
FINANCIAL HIGHLIGHTS - 2ND QUARTER 2000 • Revenues of £384.7m, up £125.7m from 1999 • Pre-tax profits (before goodwill) of £130.9m, up £54.7m from 1999 (72%) • EPS (before goodwill) *Basic -- 13.7p, up 71% *Diluted -- 13.1p, up 70% • EBITDA of £152.5m, up £48.5m from 1999 4
Slide 5: Trimark Acquisition
TRIMARK ACQUISTION • Acquisition completed on 1 August 2000 • Strategic rationale *Market leadership *Enhanced distribution opportunities *Operational capacity and capability 5
Slide 6: AIM Canada Today
AIM CANADA TODAY • Funds Under Management over C$35b - 2nd in industry • 3rd in industry in net sales YTD • 5th in industry in gross sales YTD • Strong brand recognition with global resources • Over 1,100 employees • Total of 69 mutual funds 6
Slide 7: Financial Review
FINANCIAL REVIEW Robert F. McCullough
Slide 8: Group Profit & Loss Account - Six Months
GROUP PROFIT & LOSS ACCOUNT Six Months Ended 30 June in thousands 2000 1999 Revenues £ 754,253 £ 500,080 Operating expenses (485,962) (336,103) Operating profit before amortisation 268,291 163,977 Profit before taxation 237,194 127,690 Taxation (81,780) (47,399) Profit after taxation 155,414 80,291
Slide 9: Group Profit & Loss Account - Three Months
GROUP PROFIT & LOSS ACCOUNT Three Months Ended 30 June in thousands 2000 1999 Revenues £ 384,737 £ 259,028 Operating expenses (248,321) (173,838) Operating profit before amortisation 136,416 85,190 Profit before taxation 121,842 67,172 Taxation (41,892) (24,761) Profit after taxation 79,950 42,411 E
Slide 10: EPS Comparisons
EPS COMPARISONS First Half 2nd Quarter 2000 1999 2000 1999 Earnings per ordinary share (before goodwill amortisation) -Basic 26.7p 15.4p 13.7p 8.0p -Diluted 25.6p 14.8p 13.1p 7.7p -Diluted per ADR at $1.51 $1.93 $1.12 $0.99 $0.58 -Diluted per ADR at $1.55 $1.98 $1.15 $1.02 $0.60 Earnings per ordinar
Slide 11: Quarterly Financial Comparisons
QUARTERLY FINANCIAL COMPARISONS in thousands 2000 2000 Q2 Q1 % change Revenues £ 384,737 £ 369,516 4% Operating profit (before amortisation) 136,416 131,875 3% Profit (before amortisation) 89,021 84,763 5% EPS (before amortisation) -basic 13.7p 13.1p 5% -diluted 13.1p 12.5p 5% 11
Slide 12: Segmental Analysis - First Half 2000
SEGMENTAL ANALYSIS - FIRST HALF 2000 in thousands Revenues Expenses Oper. Profit Managed Products £ 470,512 £ (244,482) £ 226,030 U.S. Institutional 95,664 (75,811) 19,853 INVESCO Global 165,980 (112,737) 53,243 Retirement and Benefit Services 21,920 (20,899) 1,021 New Business 177 (6,240) (6,063) C
Slide 13: Operating Profit - 1999 v. 2000
OPERATING PROFIT - 1999 v. 2000 (Decrease)/ in thousands 2000 1999 Increase Managed Products £ 226,030 £ 133,480 £ 92,550 U.S. Institutional 19,853 29,925 (10,072) INVESCO Global 53,243 23,508 29,735 Retirement and Benefit Services 1,021 (1,671) 2,692 New Business (6,063) (3,816) (2,247) Corporate (
Slide 14: Funds Under Management
FUNDS UNDER MANAGEMENT in billions Managed Products U.S. INVESCO RBS & Total AIM INVESCO Instit. Global New Bus. 31 March 2000 $ 391.6 $ 183.3 $ 44.6 $ 91.7 $ 64.5 $ 7.5 Market gains (14.8) (9.2) (1.7) - (3.8) (0.1) Net new (lost) business 8.9 5.5 2.5 (2.1) 3.1 (0.1) Change in US Money 4.5 3.8 0.5 -
Slide 15: Funds Under Management
FUNDS UNDER MANAGEMENT in billions Managed Products U.S. INVESCO RBS & Total AIM INVESCO Instit. Global New Bus. 31 Dec 1999 $ 357.4 $ 165.3 $ 34.4 $ 92.5 $ 57.2 $ 8.0 Market gains 5.6 3.8 2.0 0.7 (0.7) (0.2) Net new (lost) business 24.1 12.1 8.4 (3.6) 7.7 (0.5) Change in US Money 4.0 2.2 1.1 - 0.7
Slide 16: Balance Sheet
BALANCE SHEET in thousands 30 June 31 Dec 2000 1999 Fixed assets Goodwill £ 646,071 £ 664,135 Investments 158,909 128,921 Tangible assets 115,538 108,021 920,518 901,077 Current assets Debtors 833,969 675,856 Investments 65,248 60,135 Cash at bank and in hand 160,847 189,732 1,060,064 925,723 Credit
Slide 17: Group Cash Flow
GROUP CASH FLOW in thousands Six Months Ended 30 June 2000 1999 Operating profit £ 249,921 £ 145,826 Amortisation and depreciation 41,668 48,579 Change in debtors, creditors and other (31,116) (53,833) Net cash inflow from operating activities 260,473 140,572 Interest paid, net of investment income
Slide 18: Analysis of Net Debt
ANALYSIS OF NET DEBT in thousands 30 June 2000 31 December 1999 (Decrease)/Increase £ $ £ $ £ $ Current Debt 660 997 - - 660 997 Long-term Debt 565,130 853,346 659,120 1,067,774 (93,990) (214,428) 565,790 854,343 659,120 1,067,774 (93,330) (213,431) Cash (147,357) (222,509) (148,199) (240,082) 842 1
Slide 19: US GAAP Reconciliation (Profit)
US GAAP RECONCILIATION (PROFIT) in thousands Six Months Ended 30 June 2000 1999 Net profit under UK GAAP £ 155,414 £ 80,291 US GAAP adjustments: Acquisition accounting (31,634) (39,139) Taxation (15,381) (10,271) Other 411 (1,011) Net income under US GAAP £ 108,810 £ 29,870 19
Slide 20: US GAAP Reconciliation (Equity)
US GAAP RECONCILIATION (EQUITY) in thousands 30 June 2000 31 Dec 1999 Shareholders' funds under UK GAAP £ 540,990 £ 436,661 US GAAP adjustments: Acquisition accounting 1,020,834 993,765 Treasury stock (165,874) (132,615) Dividends 28,014 35,544 Other 5,548 3,957 Shareholders' equity under US GAAP £
Slide 21: Trimark Acquisition Consideration
TRIMARK ACQUISITION CONSIDERATION • Consideration of £1.2b (C$2.7b) ∗ Issuance of 26.4m ordinary and exchangeable shares ∗ Equity Subordinated Debentures of £576m (C$1.280b) (52.9m ordinary shares) ∗ Cash of £332m (C$738m) ∗ Replacement options over 3.4m shares • Shares and debentures trading on Tor
Slide 22: AMVESCAP Global Investment Services
AW AMVESCAP Global Investment Services