Impax Asset Management Group Plc · LSE:IPX
Impax Asset Management — Impax Group — H1 2009 Earnings Presentation
23 slides from Impax Asset Management's earnings presentation, May 2009
Slide 1: Impax Group plc Interim Results May 2009
Impax Group plc Interim Results May 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: Extensive investment and sector expertise
Extensive investment and sector expertise Keith Falconer Ian Simm Charlie Ridge • Group Chairman • Chief Executive • Chief Operating Officer • Former Director of • Former Project Martin Currie Ltd. Manager, McKinsey & • Previously at Co. Deutsche Bank • Joined Jan 04 • Joined Oct 96 • Joined Sept 08
Slide 5: Financial highlights (1)
Financial highlights (1) • Robust financial performance in spite of difficult market conditions • PBT marginally down reflective of cost associated with expanded operating capabilities to support future growth • Healthy cash reserves (£5.6m) plus (liquid) seeding capital invested in own funds (£3m)
Slide 6: Financial highlights (2)
Financial highlights (2) Funds under management at period end H1 2009 (£m) 2008 full year 889 2007 full year 2006 full year 1098 983 414 Revenue (£m) Profit before tax (£m) 5.45 1.32 11.39 3.86 1.82 7.11 0.5 3.84 Net assets at period end (£m) Operating cashflow (£m) 12.65 1.84 4.41 11.56 1.84 8.05 0
Slide 7: Profit & loss analysis – H1 2009
Q uo t ed eq ui H1 2009 foreign ty exchange impact fe e £m Q -e uo xi t st ed in eq g bu ui 0.0 1.0 2.0 3.0 4.0 5.0 ty si 6.0 ne fe ss e -l Pr os iv tb 3.25 at us e in eq es ui ty s Pr iv f ee at e -r ec (0.20) eq ui ur ty rin fe g e -e xc 1.32 ep tio na l O th er 0.95 tu rn ov TO er TA L 0.13 TU RN
Slide 8: 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 9: 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 10: Impax sub-sectors
Impax sub-sectors 1. Alternative Energy & Energy Efficiency Trading in Solar Renewable Meters & Industrial Buildings Transports Wind turbine carbon Fuel Cells manufacturers developers Biofuels demand side energy energy energy manufacturing & other env. & hydrogen & integrators & IPPs mgmt efficiency
Slide 11: Current sector issues
Current sector issues Stimulus packages Other developments in 2009 US • EPA greenhouse gas ruling • Draft energy bill - 25% by 2025 renewable energy standard & cap-and-trade programme. • Water infrastructure - extra $4bn (above stimulus) in Obama budget. Europe • Emissions Trading Scheme - Directive
Slide 12: A comprehensive range of funds
A comprehensive range of funds Fund Launch Size (£m)** Fees* Performance fees “Long only” Impax Environmental Markets plc Feb 02 305 0.94% - Impax Environmental Markets (Ireland) Dec 04 157 1% - Pure Play White Label Various 254 0.55% - IFSL Impax Environmental Leaders Mar 08 4 0.80% - All Cap White
Slide 13: Impax – globally recognized & provider of choice
Impax – globally recognized & provider of choice 13
Slide 14: Listed equities - investment universe
Listed equities - investment universe Pure Play Portfolio • 800 stocks with >50% Full Universe – 1400+ stocks revenues/profits Impax Environmental or capital employed in the Markets • 800 stocks with >50% revenues / profits or environmental sector capital employed in environmental markets • …plus….
Slide 15: Impax's investment performance to 30 April 2009
Impax’s investment performance to 30 April 2009 3 Year 5Y 3Y 1Y Volatilities† Impax Environmental Markets plc 47% -13% -20% 21% MSCI World 17% -13% -18% 21% FTSE All-Share 15% -21% -27% 26% * NAV Performance of Impax Environmental Markets plc in Sterling † Volatilities calculated using daily series
Slide 16: Impax's environmental hedge fund – key features
Impax’s environmental hedge fund – key features Portfolio Manager: Hubert Aarts + team of seven 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 Adju
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) Middle East: Under discussion North America: Placement agent (US); part
Slide 19: 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 20: Appendix
Appendix IMPAX)
Slide 21: Interim 2009: Profit & loss
Interim 2009: Profit & loss H1 3/09 YE 9/08 H1 3/08 (£m) (£m) (£m) Turnover 5.45 11.39 4.92 Operating expenses (4.24) (7.81) (3.47) Comprising: •Cost of operating business (3.01) (4.81) (2.27) •Long-term incentive (0.17) (0.43) (0.49) •Bonuses (1.06) (2.57) (0.71) Profit before interest & tax 1.21 3
Slide 22: Interim 2009: Balance sheet
Interim 2009: Balance sheet H1 3/09 YE 9/08 H1 3/08 (£m) (£m) (£m) Goodwill 1.63 1.63 1.63 Other non-current assets 1.77 0.62 0.09 Debtors due after one year 1.18 1.05 1.06 Other current assets 3.04 2.41 2.26 Current asset investments 1.83 3.00 3.08 Cash 5.56 7.03 4.32 Current liabilities (2.36) (4.
Slide 23: Long term employee incentive (Employee Benefit Trust)
Long term employee incentive (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