Impax Asset Management Group plc · LSE:IPX
Impax Asset Management — Impax Group — Shareholder Meeting (January 2009)
23 slides from Impax Asset Management's shareholder meeting presentation, January 2009
Slide 1: Impax Group plc January 2009
Impax Group plc January 2009 Pegasus House, 37-43 Sackville Street, London, W1S 3EH, UK Tel: +44 (0)20 7434 1122 Fax: +44 (0)20 7437 1245 Impax Group plc is authorised & regulated by the Financial Services Authority
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Impax Group plc (the "Company") in connection with updating its shareholders as to its performance. This presentation does not constitute a prospectus or listing particulars relating to the Company, nor does it constitute or form part of any offer or
Slide 3: Overview
Overview • Established, expanding fund manager dedicated to the Environmental Sector - ca. £1 billion funds under management/advisory - broad exposure across alternative energy, water treatment and waste management • Environmental Sector highly attractive for a specialist manager - Large revenues (>
Slide 4: Media coverage
Media coverage 24 September 2008 30 May 2008 15 December 2008 Credit crunch has not 17 October 2008 detracted from climate change Unnatural trends in a green arena ‘…Impax says: “This is a sector quite heavily exposed to one of the most likely areas of early ‘…In fact, I once spent a thrilling eveni
Slide 5: Media coverage
Media coverage 14 February 2008 ‘...Impax says the opportunities in the sector are growing rapidly. When Impax first started tracking clean-tech stocks in 1999 there were around 180 companies to watch. Today it is more like 600 – and they are much bigger...’ 21 February 2008 October 2008 issue ‘It h
Slide 6: Extensive Investment and Technical Expertise
Extensive Investment and Technical Expertise Keith Falconer Ian Simm Charlie Ridge • Former Director of • Former Project • Previously at Martin Currie Ltd. Manager, McKinsey & Deutsche Bank Co. • Group Chairman • Chief Operating • Joined Jan 04 • Chief Executive Officer • Joined Oct 96 • Joined Sept
Slide 7: Financial Highlights (1)
Financial Highlights (1) • Strong revenue growth underpinned by fund inflows • PBT (positive since YE 9/07) set to increase as business model scales • Healthy cash reserves (£7m) plus (liquid) seeding capital invested in own funds (ca.£3m) • Maiden final proposed dividend of 0.35 pence per share (fo
Slide 8: Financial Highlights (2)
Financial Highlights (2) Funds under management (£m) 1098 983 30 Sep 2008 434 Revenue (£m) 30 Sep 2007 Profit before tax (£m) 30 Sep 2006 11.39 3.86 7.11 2008 1.86 2008 2007 2007 3.84 2006 -0.49 2006 Operating cashflow (£m) Net assets (£m) 4.21 11.56 3.37 2008 8.05 30 Sep 2008 2007 1.54 30 Sep 2007
Slide 9: Powerful Drivers Behind the Environmental Sector
Powerful Drivers Behind the Environmental Sector Economic growth is unsustainable….. …but “society” is responding… Consumers Legislation • Population pressure • Target market sizes • Higher living standards Weak infrastructure • Mandatory capex • “Green” preferences • Power grids • Emission limits •
Slide 10: Environmental Business Growth
Environmental Business Growth Economic Sector Conventional Sub-Sectors Environmental Markets Energy Oil, Gas and Consumable Fuels • Wind turbine manufacturing • Fuel cells and hydrogen Materials Chemicals, Basic Resources and • Commodity recycling Construction Materials • Buildings energy efficiency
Slide 11: Impax Sub-Sectors
Impax Sub-Sectors Impax covers stocks in all 19 categories (and Water Utilities) which, for convenience, we group into 3 sub-sectors. 1. Alternative Energy & Energy Efficiency Trading in Solar Renewable Meters & Industrial Buildings Transports Wind turbine carbon Fuel Cells manufacturers developers
Slide 12: A Comprehensive Range of Funds
A Comprehensive Range of Funds Fund Launch Size (£m)** Fees* Performance fees “Long only” (Pure Play) Impax Environmental Markets plc Feb 02 302 0.94% - Impax Environmental Markets (Ireland) Dec 04 179 1% - Pure Play White Label Various 255 0.55% - “Long only” (All Cap) IFSL Impax Environmental Lead
Slide 13: Impax – Globally Recognized & Provider of Choice
Impax – Globally Recognized & Provider of Choice 12
Slide 14: Listed Equities - Investment Universe
Listed Equities - Investment Universe Pure Play Universe • 750 stocks with >50% Full Universe – 1400+ stocks revenues/profits Impax Environmental or capital employed in the Markets • 750 stocks with >50% revenues / profits or environmental sector capital employed in environmental markets • …plus…. P
Slide 15: Impax’s Investment Performance
Impax’s Investment Performance 3 Year 2008 2007 2006 2005 2004 2003 Volatilities† IEM plc* -24% 16% 21% 21% 15% 22% 19% MSCI World (Total Return) -19% 8% 6% 23% 7% 21% 19% FTSE ET50 (Total Return) -38% 70% 20% 24% 6% 20% 30% FTSE All-Share (Total Return) -30% 5% 17% 22% 13% 21% 24% * NAV Performance
Slide 16: Impax’s Environmental Hedge Fund – Key Features
Impax’s Environmental Hedge Fund – Key Features Investment Strategy: long/short equities Expected Volatility: <10% Investment Universe: 800 stocks in the Environmental Sector Global coverage, European bias Leverage Limits: 100% to 300% Gross Market Exposure Limits: -30% to +70% Net, Beta Adjusted Pr
Slide 17: Private Equity: Impax New Energy Investors LP
Private Equity: Impax New Energy Investors LP INEI: Private equity fund for the New Energy sector, largely renewables, in Western Europe & North America Status: €125,000,000 from three closings (last August 2006) Objective: Cash-to-cash IRR of 18-25% (net to investors) Strategy: Equity-linked invest
Slide 18: Principal Distribution Partners
Principal Distribution Partners UK: Collins Stewart (for IEM) plus direct sales Continental Europe: BNP Paribas Asset Management/Private Bank Scandinavian distributors Asia: BNP Paribas Asset Management/Private Bank DIAM (Japan) North America: Placement agent (US); partner identified for Canada 17
Slide 19: Employee Benefit Trust
Employee Benefit Trust Shares outstanding prior to EBT creation 92,722,053 Existing Scheme • Period covered 3 years ending 30 September 2007 • Ordinary shares allotted to the EBT 18,250,000 • Ordinary shares sold by EBT to fund its 1,472,995 purchase of ordinary shares • Ordinary shares held by EBT
Slide 20: Outlook
Outlook • Environmental sector drivers set to strengthen - growing urgency to address global warming - milestones for alternative energy policy to be passed during 2009 - many other policy initiatives expected (e.g. water, waste) • Sustained sector capex expected • Mounting evidence that institution
Slide 21: Appendix
Appendix IMPAX)
Slide 22: Results to YE 2008: P&L
Results to YE 2008: P&L YE 9/08 (£m) YE 9/07 (£m) Turnover 11.39 7.11 Cost of operating business (4.81) (3.45) EBITA 6.58 3.66 Employment Benefit Trust (0.43) (0.36) Charge Bonuses (2.57) (1.69) Interest received 0.28 0.21 Profit before tax 3.86 1.82 Tax (1.07) (0.53) Profit after tax 2.79 1.29 21
Slide 23: Results to YE 2008: Balance Sheet
Results to YE 2008: Balance Sheet YE 9/08 (£m) YE 9/07 (m) Goodwill 1.63 1.63 Other Non-Current Assets 0.62 0.10 Debtors due after One Year 1.05 1.21 Other Current Assets 2.41 1.91 Current Asset Investments 3.00 1.62 Cash 7.03 4.55 Current Liabilities (4.18) (2.97) Total Net Assets 11.56 8.05 Equity