Impax Asset Management Group plc · LSE:IPX
Impax Asset Management — FY2010 Earnings Presentation
29 slides from Impax Asset Management's earnings presentation, January 2011
Slide 1: Final Results For Year End 30 September 2010
Impax Asset Management Group plc Final Results For Year End 30 September 2010 January 2011 Pegasus House 37-43 Sackville Street London W1S 3EH UK Tel: +44 (0)20 7434 1122 Fax: +44 (0)20 7437 1245 Impax Asset Management Ltd is authorised and regulated by the Financial Services Authority
Slide 2: Agenda
Agenda • Business update Ian Simm (Chief Executive) • Annual results • Q&A Charlie Ridge (Chief Financial Officer) 2
Slide 3: Impax Overview: A Compelling Business Proposition
Impax Overview: A Compelling Business Proposition • Attractive sector for specialist investment managers - Environmental policy addressing unsustainable economic development globally - 1400+ quoted companies growing rapidly, US$500 billion+ (annual revenues) - Growing evidence that institutions are
Slide 4: Environmental Markets: Highlights in 2010
Environmental Markets: Highlights in 2010 • Positive policy developments - China: 15% of power from renewables by 2020 - India: 10% of power from renewables by 2015 - Cancún conference: climate change negotiations back on track - Europe: subsidy programmes extended in Germany, UK, Italy • Negative p
Slide 5: FYE 30/09/10 – Financial Highlights
FYE 30/09/10 – Financial Highlights • Assets under management (“AUM”) up 44% to £1,823 million (2009: £1,263 million) • Post year end, further increase in AUM to £2,251 million by 31 December 2010 • Revenues up 48% to £15.3 million (2009: £10.4 million) • Profit before tax £5.2 million (2009: £2.5 m
Slide 6: FYE 30/09/10 – Commercial Highlights
FYE 30/09/10 – Commercial Highlights • Successful product launches - Impax Asian Environmental Markets (long-only) - Impax New Energy Investors II (private equity) • More recently established strategies performing well - Environmental Leaders - Water • Five new segregated account mandates won • Furt
Slide 7: Impax Investment Universe & Product Range
Impax Investment Universe & Product Range Typical # of Geographic Market cap of Strategy stocks/ Benchmark Listed Equities scope universe investments launched ENVIRONMENTAL LEADERS* Listed Equity Universe of c.1400 companies Global c.US$4tn 40-60 Mar 2008 MSCI World Investment Universe ENVIRONMENTAL
Slide 8: Strategy Performance (to 31/12/10) in GBP
Strategy Performance (to 31/12/10) in GBP 5Y 3Y 1Y 1 year volatility Forward PE Environmental Specialists 65.4% 15.2% 12.0% 18.0% 15.6 Environmental Leaders N/A N/A 15.1% 17.5% 15.6 Asia-Pacific N/A N/A 26.4% 14.8% 15.4 Water N/A N/A 20.3% 16.2% 16.9 FTSE World Index 32.7% 13.8% 16.3% 16.2% 13.8 FTS
Slide 9: Impax AUM Breakdown
Impax AUM Breakdown Investment strategy AUM (£) 31/12/10 AUM (£) 30/09/10 AUM (£) 30/09/09 Environmental Specialists 1.2bn 1.0bn 843m - Impax Environmental Markets plc 451m 409m 376m - Impax Environmental Markets (Ireland) 223m 215m 190m - Third Party funds/accounts 493m 424m 277m Environmental Lead
Slide 10: Significant New Accounts
Significant New Accounts • Impax Asian Environmental Markets plc - £104.5m IPO in October 2009 - Successful £131m C Share fund raise in October 2010 • New Institutional Accounts - Second account for Russell Investments (October 2009) - €150m mandate from European institutional investor (fully funded
Slide 11: Diversified, Stable Client Base: Impax Label Funds at FYE
Diversified, Stable Client Base: “Impax Label” Funds at FYE £1,008m £705m Others 5% 2% 13% Multi Managers 11% Other Institutions 19% 23% Insurance Companies 12% 10% Pension Funds 19% 20% Private Client Managers 34% 32% 2010 2009 11
Slide 12: Increase in AUM by Geographic Region
Increase in AUM by Geographic Region (Source of Funding) Principal funds/partners • Impax Environmental Markets plc UK/Ireland £626m +£302m • Impax Environmental Markets (Ireland) • Impax Asian Environmental Markets plc • Impax Asian Environmental Markets (Ireland) • BNP Paribas Investment Partners
Slide 13: Net Inflows Across Impax Label and Third Party Funds/Accounts
Net Inflows Across both “Impax label” and Third Party Funds/Accounts Financial year end 2010 Financial year end 2009 “Impax label” funds (£m) AUM 30/09/10 1,008 AUM 30/09/09 705 Market Market movements 153 movements 64 /currency /currency Outflows 32 Outflows 45 Inflows 183 Inflows 6 AUM 30/09/09 70
Slide 14: Private Equity: Successful Launch of Second Fund
Private Equity: Successful Launch of Second Fund • Significant investment opportunity - Substantial need across the EU to fund construction of renewable power plants - Investment in projects offering stable, long-term, inflation-protected cashflow - Considerable “proprietary” deal flow from Impax ne
Slide 15: Final Results: Financial Highlights (1)
Final Results: Financial Highlights (1) Revenue (£k) Operating costs (£k) Profit before tax (£k) 2010 15,339 2010 11,512 2010 4,176 5,177 2009 9,445 10,391 Loan note 2009 7,842 8,394 2009 2,473 recovery (net £1.0m) Catch up fees (£0.95m) EBT charge (£0.5m) • Revenue up 48% • Average headcount up by
Slide 16: Final Results: Financial Highlights (2)
Final Results: Financial Highlights (2) Basic adjusted EPS (pence) Dividend per share (pence) 2010 3.50 2010 0.60 Loan note recovery (after tax) 0.79 Tax increase (0.31) 2009 0.40 PBT increase (excl 1.05 loan recovery) 2009 1.98 2.63 Effect of tax losses (0.65p) • Increase of 50% Shares in Impax are
Slide 17: Final Results: Financial Highlights (3)
Final Results: Financial Highlights (3) Investments (£k) Cash flow available to shareholders (£k) 2010 8,339 2010 4,579 Profit from operations 3,982 Mark to market 21 Other working capital (312) effects Share buy back (453) IEL redemption (1,134) Dividends paid (434) Corporation tax paid (261) NEF c
Slide 18: Outlook
Outlook • Environmental sector drivers set to strengthen - Growing urgency to address global warming - Roll-out of “green” infrastructure in Asia - Beneficiary of improving economic conditions • Environmental sector funds attracting investor and consultant interest • Impax business model positioned
Slide 19: Appendix
Appendix 19 IMPAX)
Slide 20: Impax Asset Management: Investing Since 1998
Impax Asset Management: Investing Since 1998 AUM (£m) 1998 Impax Asset Management founded 15 1999 First listed equity mandate and Impax ET50 launched 22 2000 36 2001 Listing on AIM 39 2002 Impax Environmental Markets plc 55 2003 68 2004 Impax Environmental Markets (Ireland) Fund 93 2005 First Privat
Slide 21: Diverse, High Growth Markets
Diverse, High Growth Markets Renewable & Alternative Energy Energy Efficiency Renewable Solar Energy Wind Power Biofuels Other Power Industrials Buildings Transport Energy Generation Generation Renewables Network Energy Energy Energy Developers Equipment Equipment Equipment Efficiency Efficiency Eff
Slide 22: FTSE's Partner for Environmental Indices
FTSE’s Partner for Environmental Indices • Growing demand for sector indices • Impax ET50 Index operating since 1999 • Impax-FTSE partnership established in 2007 • FTSE now marketing 18 indices world-wide • Impax revenue share and brand/profile benefits 22
Slide 23: Extensive Sector Expertise
Extensive Sector Expertise Keith Falconer Ian Simm Charlie Ridge • Chairman since 2004 • Chief Executive • CFO • 30 years investment • 20 years sector • 20 years finance expertise expertise (14 at expertise (2 at Impax) Impax) • Ex Martin Currie • Accountant, ex • Physicist, ex McKinsey Deutsche Ban
Slide 24: Strong Institutional Investor Relationships
Strong Institutional Investor Relationships Consultants Investors in pooled vehicles + > 100 other institutions White label funds Investors in segregated accounts European Institution 24
Slide 25: Well-Placed Distribution Partners
Well-Placed Distribution Partners UK: United States: - Collins Stewart - Pax World - plus direct sales - Titanium Asset Management Continental Europe: - BNP Paribas Investment Asia/Australia: Partners - BNP Paribas Investment - ASN Bank Partners - DIAM (Japan) 25
Slide 26: AUM – Monthly Development
AUM – Monthly Development* Dec-10 £2,251m Nov-10 £2,034m Oct-10 £1,942m Sep-10 £1,824m Aug-10 £1,715m Jul-10 £1,759m Jun-10 £1,796m May-10 £1,782m Apr-10 £1,907m Mar-10 £1,768m Feb-10 £1,528m Jan-10 £1,475m Dec-09 £1,516m Nov-09 £1,416m Oct-09 £1,374m Sep-09 £1,265m *AUM stated as of month end 26
Slide 27: Income Statement
Income Statement Year Year ended ended 30-Sep-10 30-Sep-09 (restated) £m £m Turnover 15.3 10.4 Operating expenses Cost of operating business 8.0 5.4 Bonuses 3.5 2.1 Long term incentives 0.1 0.6 Third party interest in consolidated funds (0.2) 0.1 11.4 8.2 Profit before interest and tax 4.0 2.2 Inves
Slide 28: Balance Sheet
Balance Sheet As at As at 30-Sep-10 30-Sep-09 (restated) £m £m Goodwill and intangibles 1.6 1.6 Other non current assets 0.4 1.8 2.0 3.4 Cash 11.7 10.3 Current asset investments 7.0 3.9 Other current assets 6.4 3.2 Total assets 27.1 20.8 Current liabilities (10.2) (7.0) Net assets 16.9 13.9 Sharehol
Slide 29: Disclaimer
Disclaimer This document has been prepared by Impax Asset Management Group plc and approved by Impax Asset Management Limited (Impax, authorized and regulated by the Financial Services Authority). The information and any opinions contained in this document have been compiled in good faith, but no re
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