Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — Q1 2006 Earnings Presentation
21 slides from Invesco's earnings presentation, Apr 26, 2006
Slide 1: 2006 First Quarter Results
AMVESCAP Helping people worldwide build their financial security 2006 First Quarter Results Martin L. Flanagan, Chief Executive Officer Loren M. Starr, Chief Financial Officer April 26, 2006
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: Agenda
Agenda Our Business Today Financial Results Questions and Answers Appendix 2
Slide 4: Summary of first quarter 2006 results
Summary of first quarter 2006 results 1Q06 results indicate good progress against a multi-year re-building process Net operating margins of 31.9% in the quarter vs. 22.5% Overall operating in 4Q05 results Continued focus on disciplined expense management EPS increased to $0.13 from $0.07 in 4Q
Slide 5: AMVESCAP - Quarterly Flows
AMVESCAP - Quarterly Flows Net flows have become positive for the first time in 15 quarters Positive flows in 1Q06 influenced by seasonality Gross sales in 1Q06 were up 34% from 1Q05 while the redemption rate increased due to outflows in Canada and institutional Quarterly long-term flows Gross
Slide 6: Distribution Channels – Quarterly Flows
Distribution Channels – Quarterly Flows Strong retail flows from our European and Asian clients Net inflows of our institutional money market and other (excluded from graph below) was $7.4bn in 1Q06 vs. $1.8bn in 4Q05 Retail quarterly flows Institutional quarterly flows PWM quarterly flows ($ in
Slide 7: Assets Under Management - Quarterly
Assets Under Management - Quarterly (in billions) 1Q06 4Q05 % Change 3Q05 2Q05 1Q05 Beginning Assets $386.3 $380.5 1.5% $373.2 $375.4 $382.1 Inflows 23.1 15.8 46.2% 15.7 17.6 17.2 Outflows (21.6) (19.5) 10.8% (20.0) (23.3) (19.7) Net flows 1.5 (3.7) N/A (4.3) (5.7) (2.5) Net flows in Money Market 7.
Slide 8: AMVESCAP’s Current Investment Performance
AMVESCAP’s Current Investment Performance Retail % of AUM in Top Half of Peer Group 1yr 3yr 5yr Mar-06 Dec-05 Mar-06 Dec-05 Mar-06 Dec-05 US (Lipper) 51% 62% 48% 34% 34% 22% US (Morningstar) 64% 45% 68% 58% 66% 45% Canada 4% 14% 21% 28% 76% 90% UK 66% 72% 94% 87% 88% 83% Continental Europe 64% 66% 7
Slide 9: AMVESCAP’s Strengths Create a World of Opportunity
AMVESCAP’s Strengths Create a World of Opportunity Offices in 19 countries Tremendous expertise Presence in both and knowledge across developed and the organization Global developing markets footprint Great people World of Opportunity Across our: Diversification Focus on f Asset classes inve
Slide 10: Executing on Our Strategic Direction
Executing on Our Strategic Direction Achieve strong investment performance over the long term Ensuring we have well defined, repeatable processes that are clearly communicated to clients Deliver AVZ products anywhere in the world to Build a high performance meet client needs organization Seeking
Slide 11: Aligning Our Management Structure with Our Strategic Direction
Aligning Our Management Structure with Our Strategic Direction AVZ CEO M. Flanagan N. A. Retail WW Institutional U.K. Retail Wealth Mngmt. CAO CFO Gen. Counsel Ops../ IT & CE/AP P. Taylor and M. Williamson* B. Yerbury J. Markwalter C. Meadows L. Starr K. Carome J. Robertson J. Rogers Evolved archi
Slide 12: Financial Results
AMVESCAP Financial Results 11
Slide 13: Operating Results – Quarterly
Operating Results – Quarterly $ in Millions 1Q06 4Q05* % Change** 3Q05 2Q05 1Q05 Management Fees 620 574 8.1% 556 543 542 Service and Distribution 136 129 4.9% 126 141 142 Other 27 32 (13.8)% 35 35 26 Total Revenues 783 735 6.6% 717 719 710 Third-party distribution, service and advisory fees (199) (
Slide 14: Capital Management Update
Capital Management Update Capital Deployment Priorities f Reinvest in our business f Acquisitions when they makes sense f Dividends – progressive growth f Share repurchases Total cash as of 3/31/06 was $493.5mn which includes client cash of $172.0mn Potential key cash needs f PowerShares - $10
Slide 15: Questions and Answers
AMVESCAP Questions and Answers Marty Flanagan President and CEO, AMVESCAP Loren Starr CFO, AMVESCAP 14
Slide 16: Appendix
AMVESCAP Appendix 15
Slide 17: Strength Through Diversification
Strength Through Diversification By Client Domicile By Channels By Asset Class Canada Equity 11% 46% Retail U.K. U.S. 49% 14% 60% Balanced Alternatives 10% Institutional Europe 6% 47% 9% Stable Value Money Asia PWM 11% Market 6% 4% 15% Fixed Income 12% U.S. $248.1B Institutional $191.1B Equity $190.
Slide 18: Assets Under Management – 1Q06 By Channels
Assets Under Management – 1Q06 By Channels (in billions) Total Retail Institutional PWM December 31, 2005 $386.3 $190.2 $179.8 $16.3 Inflows 23.1 16.4 5.5 1.2 Outflows (21.6) (14.4) (6.2) (1.0) Net flows 1.5 2.0 (0.7) 0.2 Net flows in Money Market 7.4 (1.0) 8.4 -- Funds and Other Market Gains/Reinve
Slide 19: Assets Under Management – 1Q06 By Asset Class
Assets Under Management – 1Q06 By Asset Class Equity Fixed Balanced Money Stable Alter- (in billions) Total Income Market Value natives December 31, 2005(a) $386.3 $178.6 $47.2 $40.5 $52.3 $45.7 $22.0 Inflows 23.1 12.5 6.0 2.0 0.6 1.0 1.0 Outflows (21.6) (13.9) (2.6) (2.6) (0.9) (1.0) (0.6) Net flow
Slide 20: Assets Under Management – 1Q06 By Client Domicile
Assets Under Management – 1Q06 By Client Domicile (in billions) Total U.S. Canada U.K. Europe Asia December 31, 2005 $386.3 $235.6 $42.2 $53.6 $32.0 $22.9 Inflows 23.1 7.5 1.2 2.9 7.8 3.7 Outflows (21.6) (9.9) (2.4) (2.4) (4.4) (2.5) Net flows 1.5 (2.4) (1.2) 0.5 3.4 1.2 Net flows in Money Market 7.
Slide 21: Additional Income and Expense Information
Additional Income and Expense Information 2006 2005 ($ millions) 1Q06 4Q05 Operating items: Performance fees 33 16 Other - Goodwill impairment (16.6) Other (loss)/income items: Taiwan bond funds capital infusion (11.3) Foreign exchange revaluation (6.8) 20