Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — Q3 2004 Earnings Presentation
24 slides from Invesco's earnings presentation, Oct 28, 2004
Slide 1: 2004 Third Quarter Results
AMVESCAP Helping people worldwide build their financial security 2004 Third Quarter Results Charles W. Brady, Executive Chairman James Robertson, Chief Financial Officer October 28, 2004
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may include statements that constitute "forward-looking statements" under the United States securities laws. Forward-looking statements include information concerning possible or assumed future results of our operations, earnings, liquidity, cash flow and
Slide 3: Financial Review
AMVESCAP Financial Review
Slide 4: Summary Profit & Loss Account
Summary Profit & Loss Account in thousands Nine Months Ended Sept 30, 2004 2003 Revenues £857,994 £856,851 Expenses: Operating (634,286) (635,571) Exceptional (249,710) (62,094) Goodwill amortization (114,309) (111,933) Operating profit (loss) (140,311) 47,253 Investment income 10,883 4,702 Interest
Slide 5: Group Profit & Loss Account
Group Profit & Loss Account in thousands Three Months Ended Sept 30, 2004 2003 Revenues £280,906 £304,257 Expenses: Operating (209,127) (216,848) Exceptional (249,710) - Goodwill amortization (38,284) (37,095) Operating profit (loss) (216,215) 50,314 Investment income 3,325 1,203 Interest expense (9
Slide 6: Exceptional Items
Exceptional Items in thousands U.S. regulatory investigations: Settlement costs £208,918 Other related costs 20,249 Lease costs 20,224 Redundancy & reorganization 5,545 Other (5,226) Total exceptional items £249,710 Total exceptional items net of tax £190,579 Diluted per share impact 23.5p 6
Slide 7: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2004 2004 Q3 Q2 % change Revenues £ 280,906 £ 288,818 (2.7)% Operating expenses 209,127 212,213 (1.5)% Operating profit 71,779 76,605 (6.3)% Operating margin 25.6% 26.5% EBITDA 86,004 92,665 (7.2)% EPS - diluted 5.2p 5.4p (3.7)% EBITDA per share - diluted
Slide 8: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2004 2003 Q3 Q3 % change Revenues £ 280,906 £ 304,257 (7.7)% Operating expenses 209,127 216,848 (3.6)% Operating profit 71,779 87,409 (17.9)% Operating margin 25.6% 28.7% EBITDA 86,004 106,800 (19.5)% EPS - diluted 5.2p 6.6p (21.2)% EBITDA per share - dil
Slide 9: Segmental Analysis
Segmental Analysis in thousands Nine Months Ended September 30, 2004 Revenues Expenses Oper. Profit* AIM U.S. £334,602 £(207,865) £126,737 Canada 127,077 (56,945) 70,132 461,679 (264,810) 196,869 INVESCO U.S. 134,388 (101,100) 33,288 U.K. 137,936 (121,035) 16,901 Europe/Asia 57,426 (55,861) 1,565 32
Slide 10: Operating Profit – 2004 Q3 V. 2004 Q2
Operating Profit – 2004 Q3 V. 2004 Q2 in thousands 2004 2004 Q3 Q2 Change AIM U.S. £40,466 £42,575 £(2,109) Canada 23,695 24,945 (1,250) 64,161 67,520 (3,359) INVESCO U.S. 11,607 8,688 2,919 U.K. 5,292 6,292 (1,000) Europe/Asia 936 480 456 17,835 15,460 2,375 Private Wealth/Retirement 1,676 668 1,00
Slide 11: Funds Under Management - YTD
Funds Under Management - YTD in billions AIM INVESCO Total U.S. Canada U.S. U.K. Europe/Asia PWM December 31, 2003 $370.6 $151.1 $28.7 $118.5 $39.0 $23.8 $9.5 Market gains 5.2 (0.7) 0.7 2.7 1.8 1.0 (0.3) Net new /(lost) business (11.9) (9.4) 0.7 (3.2) 1.4 (0.9) (0.5) Change in money market funds (9.
Slide 12: Funds Under Management - QTD
Funds Under Management - QTD in billions AIM INVESCO Total U.S. Canada U.S. U.K. Europe/Asia PWM June 30, 2004 $371.8 $139.5 $30.8 $119.2 $43.1 $24.5 $14.7 Market gains (4.1) (2.9) (0.9) 0.1 (0.3) 0.2 (0.3) Net new /(lost) business (5.0) (3.4) 0.1 (1.3) 0.9 (1.2) (0.1) Change in money market funds (
Slide 13: Balance Sheet
Balance Sheet in thousands Sept 30, 2004 Dec 31, 2003 Fixed assets Goodwill £2,346,987 £2,411,803 Investments 88,574 89,639 Tangible assets 154,913 170,598 2,590,474 2,672,040 Current assets Debtors 943,469 880,467 Investments 82,001 74,652 Cash 315,473 318,713 1,340,943 1,273,832 Current liabilitie
Slide 14: Group Cash Flow
Group Cash Flow in thousands Nine Months Ended Sept 30, Sept 30, 2004 2003 Operating profit (loss) £(140,311) £47,253 Goodwill amortization and depreciation 147,865 150,457 Change in debtors, creditors and other 229,228 59,060 Net cash inflow from operating activities 236,782 256,770 Interest paid,
Slide 15: Analysis of Net Debt
Analysis of Net Debt in thousands September 30, 2004 December 31, 2003 (Decrease)/Increase £ $ £ $ £ $ Senior notes ($1,050m) 582,330 1,050,000 594,059 1,050,000 (11,729) - Credit facility* 84,299 152,000 130,127 230,000 (45,828) (78,000) Other, including fx 5,689 10,256 6,079 10,744 (390) (488) Tot
Slide 16: Average Shares Outstanding
Average Shares Outstanding in thousands Sept 30, 2004 June 30, 2004 Dec 31, 2003 Ordinary shares 774,946 774,362 768,538 Exchangeable shares 28,732 29,022 34,347 Shares outstanding 803,678 803,384 802,885 Shares related to options/ long-term incentive plan 6,731 9,129 7,486 Total shares 810,409 812,
Slide 17: IFRS Transition Timeline
IFRS Transition Timeline s uart e r q ts and nsitio n ent epor e n0 4) on a ua rter with se qu al R r n dat = 1 Ja en tati n of tr tq e firs releas ves* Sub Annu unde si o ver on da te s Pre lanati ts o End S IFR ings arati and sented o n p n ter n p pre S C nsiti ex stme uar ear 4 com (tra j u Q IF
Slide 18: IFRS Areas of Particular Interest
IFRS Areas of Particular Interest Share-based compensation expense Goodwill Financial instruments Employee pension / post retirement benefits 18
Slide 19: Appendix: Restatement of Quarterly Results for Business Realignment
AMVESCAP APPENDIX Restatement of Q3 & Q4 2003 and Q1 & Q2 2004 Quarterly Results for Business Realignment This appendix contains restated segmental information for the 3rd & 4th quarter 2003, and 1st and 2nd quarter 2004. These numbers reflect the Denver based investment management team in AIM U.S.
Slide 20: Q3 2003
Q3 2003 in thousands Three Months Ended September 30, 2003 Revenues Expenses Oper. Profit* AIM U.S. £130,138 £(76,542) £53,596 Canada 41,871 (18,864) 23,007 172,009 (95,406) 76,603 INVESCO U.S. 45,547 (37,181) 8,366 U.K. 45,141 (34,515) 10,626 Europe/ Asia 20,093 (18,599) 1,494 110,781 (90,295) 20,4
Slide 21: Q4 2003
Q4 2003 in thousands Three Months Ended December 31, 2003 Revenues Expenses Oper. Profit* AIM U.S. £121,876 £(73,681) £48,195 Canada 42,978 (21,092) 21,886 164,854 (94,773) 70,081 INVESCO U.S. 47,345 (34,066) 13,279 U.K. 46,508 (35,858) 10,650 Europe/ Asia 21,898 (21,235) 663 115,751 (91,159) 24,592
Slide 22: Q1 2004
Q1 2004 in thousands Three Months Ended March 31, 2004 Revenues Expenses Oper. Profit* AIM US £114,020 £(70,324) £43,696 Canada 41,817 (20,325) 21,492 155,837 (90,649) 65,188 INVESCO US 46,307 (33,314) 12,993 UK 46,107 (40,790) 5,317 Europe/ Asia 19,786 (19,637) 149 112,200 (93,741) 18,459 Private W
Slide 23: Q2 2004
Q2 2004 in thousands Three Months Ended June 30, 2004 Revenues Expenses Oper. Profit* AIM US £112,847 £(70,272) £42,575 Canada 42,882 (17,937) 24,945 155,729 (88,209) 67,520 INVESCO US 42,368 (33,680) 8,688 UK 47,671 (41,379) 6,292 Europe/ Asia 18,732 (18,252) 480 108,771 (93,311) 15,460 Private Wea
Slide 24: 2004 Third Quarter Results
AMVESCAP 2004 Third Quarter Results