Impax Asset Management Group plc · LSE:IPX
Impax Asset Management — Shareholder Meeting (January 2012)
16 slides from Impax Asset Management's shareholder meeting presentation, Jan 26, 2012
Slide 1: Annual General Meeting, Financial Year Ending 30 Sept 2011
Impax Asset Management Group plc Annual General Meeting Financial Year Ending 30 Sept 2011 Norfolk House 31 St James’s Square London SW1Y 4JR 26 January 2012 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 Authorit
Slide 2: Financial Highlights
Financial Highlights Revenue (£m) Operating earnings (£m)* Profit before tax (£m) 20112 20.9 2011 2 6.2 2011 7.1 20101 15.3 2010 1 3.8 2010 5.2 AUM (£m) Diluted earnings per share Shareholders’ Equity (£m) (pence)** 30 September £1,896 2011 3.74 2011 21.5 2011 30 September £1,823 2010 3.49 2010 16.9
Slide 3: Commercial Highlights
Commercial Highlights • Expansion of recently established • International expansion products ‐ Hong Kong ‐ IAEM plc C Share ‐ US ‐ Impax New Energy Investors II • Corporate development • New listed equity mandates ‐ Senior staff ‐ LD pension fund ‐ New London office ‐ BNP Paribas L1 Green Future Fun
Slide 4: Environmental Markets Update (I)
Environmental Markets Update (I) • Major developments in environmental markets ‐ Fukushima ‐ Arab spring/oil ‐ Carbon taxes/markets ‐ US drought • China’s Five Year Plan ‐ c.$1.5trn investment in environmental sectors by 2020* ‐ Strategic sectors: Renewables, Industrial energy efficiency; LED lighti
Slide 5: Environmental Markets Update (II)
Environmental Markets Update (II) Landmark corporate transactions = IPO 5
Slide 6: Listed Equity Strategy Performance (to 30/10/11) in GBP
Listed Equity Strategy Performance (to 30/10/11) in GBP 5Y 3Y 1Y Forward PE* Environmental Specialists 23.4% 40.8% ‐6.2% 13.5x Environmental Leaders N/A 48.9% ‐2.1% 12.6x Water N/A 63.3%** 0.4% 13.2x FTSE World Index 19.1% 41.7% 0.4% 11.1x FTSE ET50 ‐4.1% ‐3.9% ‐20.2% 12.9x FTSE indices are total re
Slide 7: Increase in AUM by Geographic Region (Client Domicile)
Increase in AUM by Geographic Region (Client Domicile*) £ million 822 UK/Ireland 929 Other Europe 599 559 AUM 30/09/10 65 Total £1.8bn Asia Pacific 89 AUM 30/09/11 Total £1.9bn 19 North America 16 Multi‐region 392 Private equity 230 * Estimated breakdown based on fund domicile 7
Slide 8: Flows for Impax label and Third party funds/accounts
Flows for “Impax label” and Third party funds/accounts “Impax label” funds (£m) Third party funds/accounts (£m) 3030September September 2011 2011 712 3030September September2011 2011 792 Market movement (236) Market movement (214) H2 Outflows (40) Outflows (116) Inflows 26 Inflows 79 3131March March
Slide 9: Private Equity Highlights
Private Equity Highlights • Significant investment opportunity ‐ Wind and solar PV: c.€230 billion investment by 2014 in EU* ‐ Stable, long‐term, inflation‐protected cashflow ‐ “Proprietary” deal flow • NEF I ‐ Fund I (€125m) now fully invested/committed ‐ Impax committed to invest €3.76m into Fund
Slide 10: Channels for Growth
Channels for Growth • US distribution ‐ Pax Global Green Fund (ca.$40m, Morningstar “4 star”) ‐ Impax Green Markets Fund LP ‐ Consultants ‐ Focus on endowments, foundations, family offices, charities • BNP Paribas Investment Partners • New strategies • Additional distribution resources 10
Slide 11: Final Results: Financial Highlights (1)
Final Results: Financial Highlights (1) Revenue (£m) Operating costs (£m) Operating Margin % 2011 20.9 2011 14.7 20.1 2011 30% 2010 2010 2010 25% 15.3 11.5 Long‐term incentive schemes * * Long‐term incentive schemes include the IFRS 2 share based payment charge, exceptional NIC and other long‐term i
Slide 12: Final Results: Financial Highlights (2)
Final Results: Financial Highlights (2) Diluted adjusted EPS (p) Ordinary Shares (m) (per diluted adjusted EPS) 2011 3.74 Dilutive effect of April 2011 share awards (0.64) 2011 Ordinary Shares 127.4 Exceptional NIC charge (after tax) (0.74) Increased other treasury gains Additional shares re EMI sch
Slide 13: Final Results: Financial Highlights (3)
Final Results: Financial Highlights (3) Investments (£m) Cash reserves (operating entities) (£m) Cash reserve commitments (£m) 30 September 2011 20.0 30 September 2011 Working capital Cash as at 30 September 4.8 2.7 20.0 and other 2011 Operating cash 6.8 Mark to market 0.6 flows Short term requireme
Slide 14: New Remuneration Policy (2011 onwards)
New Remuneration Policy (2011 onwards) • Market median salaries • Variable remuneration pool (“VRP”): 45% of “EBIT before variable remuneration” • VRP reduced by the fair value charge of a Employee Share Option Plan (“ESOP”) • ESOP: “10% out‐of‐the‐money options” over up to 14 million shares (FY 201
Slide 15: Outlook
Outlook • Attractive prospects for environmental markets to sustain “superior growth” • Active investment management ideal for exploiting inefficient prices • Impax “platform” well positioned for further expansion • Scope for further increase in operating margin 15
Slide 16: 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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