Impax Asset Management Group plc · LSE:IPX
Impax Asset Management — Shareholder Meeting (February 2015)
24 slides from Impax Asset Management's shareholder meeting presentation, Feb 4, 2015
Slide 1: Impax Asset Management Group plc Annual General Meeting
Impax Asset Management Group plc Annual General Meeting, 4 February 2015 CLEAR INVESTMENT
Slide 2: Performance (year ended 30 September 2014)
Performance (year ended 30 September 2014) AUM up 25% Financial performance 2014 2013 Assets under management £2.8bn £2.2bn Operating earnings up 23% Revenue £20.4m £18.5m Operating earnings1 £5.3m £4.3m Profit/(Loss) before tax2 £3.5m £3.4m Dividend increased 56% Shareholders’ equity £24.9m £
Slide 3: Investing since 1998 (financial year)
Investing since 1998 (financial year) FY AUM (£m) 1998 15 1999 20 Phase 1: 2000 39 Establishing the Business 2001 38 2002 55 2003 66 2004 69 2005 214 Phase 2: 2006 429 Scale up to Critical Mass 2007 982 2008 1,099 2009 1,265 2010 1,823 Phase 3: Consolidation & Investment 2011 1,896 2012 1,828 2013 2
Slide 4: Our strategy
Our strategy Attractive investment themes Experienced team ■ Rapidly growing markets and ■ 61 people, including 30 investment investment universe professionals ■ Market complexity leads to ■ Stable senior investment team mispricing ■ Significant staff ownership ■ Benefits to investors seeking to red
Slide 5: Resource Efficiency and Environmental Markets
Resource Efficiency and Environmental Markets DIVERSE LISTED EQUITY OPPORTUNITIES (FTSE CLASSIFICATION) Energy Water Energy Efficiency Alternative Energy Water Infrastructure Pollution Control ■ Power Network ■ Developers & IPPs & Technologies ■ Infrastructure ■ Pollution Control Solutions ■ Industr
Slide 6: Investor interest
Investor interest Superior growth Yield Asset resilience Hedging systemic risk “Impact” investing CLEAR INVESTMENT 6
Slide 7: Investment strategies
Investment strategies AUM Inception date 31 Dec 2014 Specialists Universe: 1000 companies £820m Mar 2002 Universe Size: $1.3 T market cap Leaders Universe: 1600 companies £566m Mar 2008 Universe Size: $4.1 T market cap Water LISTED EQUITIES Universe: 250 companies £1.4bn Jan 2009 Universe Size: $0.8
Slide 8: Our offices and distribution partners
Our offices and distribution partners UK IEM plc UCITS Platform Europe ex UK North America Old Mutual Ethical Fund BNP Paribas PaxWorld ASN Bank Mandate from US Private Bank London Delaware funds platform Asia Pacific BNP Paribas in Hong Kong Portland New York and Australia Hong Kong Impax offices C
Slide 9: Strong AUM growth in Europe and North America
Strong AUM growth in Europe and North America AUM BREAKDOWN (£M) BY CLIENT DOMICILE AND PRODUCT TYPE 634 UK/Ireland 644 Other 1,040 Europe 1,425 66 Asia Pacific 60 North 77 America 249 Private 380 Equity 354 0 Property 22 AUM 30/09/2013 Total £2,197m AUM 30/09/2014 Total £2,755m CLEAR INVESTMENT 9
Slide 10: US: rapid expansion and good prospects
US: rapid expansion and good prospects AUM FROM US INVESTORS (£M) Business development since 2006 Sep- 2009 9 Team doubled to 4 (NYC, Portland) Sep- 2010 16 Healthy pipeline Sep- 2011 19 Sep- 2012 36 Sep- 77 2013 Sep- 249 2014 Impax private managed funds Pax World US private bank CLEAR INVESTM
Slide 11: Private Equity: platform for further asset raising
Private Equity: platform for further asset raising NEF I (€125m) ■ Strong portfolio operating performance ■ Focus on cost cutting and debt restructuring ■ Continue complex arbitration against Spanish government NEF II (€330m) ■ 416MW European wind projects in operation/construction ■ Investment comm
Slide 12: Sustainable Property: a significant value creation opportunity
Sustainable Property: a significant value creation opportunity Generating “green alpha” Reducing downside risk Future proofing assets lower increasing regulation operating cost Sustainable property limited supply higher investors & occupiers demand CLEAR INVESTMENT 12
Slide 13: Financial highlights
Financial highlights REVENUE (£M) OPERATING EARNINGS (£M) OPERATING MARGIN 2014 20.4 2014 5.3 2014 26.1% 2013 18.5 2013 4.3 2013 23.5% CLEAR INVESTMENT 13
Slide 14: Strong balance sheet
Strong balance sheet CASH (£M) INVESTMENTS (£M) 30 Sept 2014 17.2 Working capital (0.5) 30-Sep-14 7.7 10.6 Investment hedges (1.0) and treasury income Seed funding net of (1.9) redemptions Share buy backs (0.6) 30-Sep-13 6.2 8.9 Dividends paid (1.3) Operating cash flows 6.0 30 Sept 2013 16.5 Listed
Slide 15: 56% rise in full year dividend
56% rise in full year dividend DIVIDEND PER SHARE (P) 2014 0.30 1.10* 1.40 2013 0.90 2012 0.75 2011 0.70 2010 0.60 2009 0.40 2008 0.35 * Proposed CLEAR INVESTMENT 15
Slide 16: Shareholder register and buybacks
Shareholder register and buybacks REGISTER BUYBACKS % of total issued share capital BNP Paribas 127.7 (12.3) Investment Partners (3.4) Others 112.1 30% 25% 4% DIAM Co Ltd 26% 6% Clients of Rathbone 9% Investment Managers Directors & staff Issued Bought back Unexercised Eligible for Other EBT holding
Slide 17: Equity incentive programmes
Equity incentive programmes OPTIONS NEW SHARE SCHEME Strike prices 37.6 - 56.9p 3.7m 14 m ■ No dilution: Fair Value of shares deducted from bonus pot 10.3 m ■ Restricted shares to vest over 3 - 5 years ■ Limited programme: 1.25m (FY 2014) ■ Buy-backs to continue Issued New issue Total Feb Jan 15 201
Slide 18: Outlook
Outlook Attractive prospects for target Active investment management markets to sustain “superior growth” ideal for exploiting inefficient price ■ Major overhaul in energy policies ■ Rapidly changing market drivers worldwide ■ Expert team can add value ■ Investment in infrastructure ■ Valuation anom
Slide 19: Specialists Composite – Annual Disclosure Presentation
Specialists Composite – Annual Disclosure Presentation *Results shown for the year 2002 represent partial period performance from March 1, 2002 through December 31, 2002. N.A. - Information is not statistically meaningful as the composite contains a low number of accounts. ** Results shown for the y
Slide 20: Leaders Composite – Annual Disclosure Presentation
Leaders Composite – Annual Disclosure Presentation *Results shown for the year 2008 represent partial period performance from March 1, 2008 through December 31, 2008. N.A. - Information is not statistically meaningful as the composite contains a low number of accounts. ** Results shown for the year
Slide 21: Water Composite – Annual Disclosure Presentation
Water Composite – Annual Disclosure Presentation N.A. - Information is not statistically meaningful as the composite contains a low number of accounts. ** Results shown for the year 2014 represent the period performance from January 1, 2014 through December 31, 2014. *** Composite Dispersion and 3yr
Slide 22: Food & Agriculture Composite – Annual Disclosure Presentation
Food & Agriculture Composite – Annual Disclosure Presentation * Results shown for the year 2012 represent partial period performance from December 1, 2012 through December 31, 2012. N.A. - Information is not statistically meaningful as the composite contains a low number of accounts. ** Results show
Slide 23: Asia Pacific Composite – Annual Disclosure Presentation
Asia Pacific Composite – Annual Disclosure Presentation * Results shown for the year 2009 represent partial period performance from November 1, 2009 through December 31, 2009. N.A. - Information is not statistically meaningful as the composite contains a low number of accounts. ** Results shown for
Slide 24: Important Information
Important Information Disclaimer This document has been prepared by Impax Asset Management Group plc and approved by Impax Asset Management Limited and Impax Asset Management (AIFM) Limited (“Impax”, authorised and regulated by the Financial Conduct Authority). Both companies are wholly owned subsid
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