Polar Capital Holdings Plc · LSE:POLR
Polar Capital — FY2011 Earnings Presentation
20 slides from Polar Capital's earnings presentation, June 2011
Slide 1: Polar Capital Holdings Plc Results Presentation
POLAR CAPITAL HOLDINGS PLC Results Presentation For year ending 31 March 2011 Tim Woolley (CEO) John Mansell (COO) June 2011 POLAR For Professional Client Use Only. CAPITAL
Slide 2: Contents
Contents POLAR CAPITAL Section I Business Review Section II Financial Review 1
Slide 3: Business Review
POLAR CAPITAL BUSINESS REVIEW 2
Slide 4: Analysis of AUM
Analysis of AUM POLAR CAPITAL At 31 March 2011 AuM Split by Strategy Investor Mix by Geography Hedge RoW Funds Europe 3% UK 20% 28% 59% USA Long Only 10% 80% AuM Split by Business Unit Investor Mix (365 Clients) Asset Financials GEM Convertibles Investment Manager Healthcare 2% 1% Trusts 10% Family
Slide 5: Overview of Polar Capital
Overview of Polar Capital POLAR CAPITAL AUM Flows AUM at start of period: 31 March 2010 $2.53bn Gross inflows quarter 1 [long 324 hedge 127] $451m quarter 2 [long 190 hedge 33] $223m quarter 3 [long 328 hedge 59] $387m quarter 4 [long 529 hedge 27] $556m $1,617m Gross outflows quarter 1 [long 55 hed
Slide 6: Performance
Performance POLAR CAPITAL UCITS Fund Strategies – Lipper Peer Group Quartile Rankings (to 31 March 2011) 6 months 1 year 3 years 5 years Global Technology 1 1 1 2 Japan 1 1 1 1 Healthcare Opportunities 1 2 N/A N/A GEM Growth N/A N/A N/A N/A GEM Income N/A N/A N/A N/A Insurance 2 1 1 1 Far Eastern Fi
Slide 7: Capacity of Fund Strategies
Capacity of Fund Strategies POLAR CAPITAL Strategy Size Total Capacity 31 March 2011 in Current Strategies Hedge Fund Strategies UK* $0.17bn $1.00bn European Conviction $0.10bn $1.00bn European Forager $0.48bn $0.50bn ALVA Convertibles $0.04bn $1.00bn Long Only Strategies Technology Trust $0.76bn $1
Slide 8: Polar AUM
Polar AUM POLAR CAPITAL Good Recovery Since Crisis $bn For Professional Client Use Only. Source: Polar Capital. 7
Slide 9: Sales Organisation
Sales Organisation POLAR CAPITAL November 2009 CEO 1 2 3 44 5 Sales People 1 2 Sales Support November 2010 CEO Head of UK Head of International 1 2 3 4? 1 2? ? Sales People 1 2 3 4? Sales Support June 2011 CEO Head of UK Head of International 2 Head of 1 2 1 3 Marketing Sales People 1 2 3 4 Sales Su
Slide 10: Strategy
Strategy POLAR CAPITAL Positioning Highly differentiated performance of funds Balance of long and hedge fund product Improved asset gathering from reorganised and expanded sales team Strong operating infrastructure positions the business well for changes in the operating and regulatory envir
Slide 11: Financial Review
POLAR CAPITAL FINANCIAL REVIEW 10
Slide 12: Financial Review: Highlights
Financial Review POLAR CAPITAL Highlights AUM AUM at 31 March 2011 up 53% to $3.9bn (2010: $2.5bn) Profitability Pre-tax core profitability £3.6m (2010: nil) Pre-tax (pre SBP) profitability £10.2m (2010: £3.7m) EPS and Dividend Adjusted diluted EPS up to 9.5p (2010: 3.8p) Adjustment ex
Slide 13: Financial Review: Profitability
Financial Review POLAR CAPITAL Profitability 2010 2011 £m £m Average AUM $1.9bn $3.2bn Core operating profit 0.0 3.6 Performance fee profit 2.5 5.7 Interest and similar income 1.2 0.9 PBT pre IFRS S.B.P. £3.7m £10.2m Share based payments (“S.B.P”) (0.6) (0.5) Intangible asset amortisation - (0.5) PB
Slide 14: Financial Review: Costs
Financial Review POLAR CAPITAL Costs 2010 2011 £m £m Salaries and bonuses 8.1 8.9 Core distributions 1.6 3.5 Other staff costs 0.4 - Core compensation costs £10.1m £12.4m Other operating costs 4.2 6.1 Core operating costs £14.3m £18.5m Performance fee interests 3.7 9.0 Core operating costs £18.0m £2
Slide 15: Financial Review: Other Operating Costs
Financial Review POLAR CAPITAL Other Operating Costs Year to Year to Mar 10 Mar 11 Comments IT 1.5 2.0 Increase in number of teams Rent and Rates 0.8 1.1 Overseas offices Professional Fees 0.5 0.7 HIM transaction Insurance 0.4 0.4 Travel and Entertainment 0.5 0.7 Increased sales activity Other 0.5 1
Slide 16: Financial Review: Dividend
Financial Review POLAR CAPITAL Dividend Dividends for the year 7.5p (2010: 4.5p) Dividend reflects: - Policy of distribution (i) Material portion of core profits and; (ii) Majority of performance fee profits - Current run rate profitability of the Company - Confidence in Company’s prospects - Ac
Slide 17: Financial Review: Cash and Investments
Financial Review POLAR CAPITAL Cash and Investments March 2010 March 2011 £m £m Cash £19.7m £19.2m Available for sale investments Hedge fund investments £16.3m £4.2m Hedge fund seed nil £15.2m Long only seed £3.4m £10.0m £19.7m £29.4m Total Cash and Investments £39.4m £48.6m For Professional Client
Slide 18: Shareholder Analysis at March 2011
Financial Review POLAR CAPITAL Shareholder Analysis at 31 March 2011 Holding Percentage of ISC Directors, Founders and Staff 34.0m 45% Caledonia 10.7m 14% XL 8.0m 11% EBT 2.1m 3% Blackrock 4.9m 6% Legal & General 3.2m 4% free float = 27% Others 12.8m 17% Issued Share Capital 75.7m 100% Year end dilu
Slide 19: Summary
Summary POLAR CAPITAL Well Positioned in Challenging Times Strong Consistent and impressive bull and bear market performance. Performance Across long and hedge strategies. Significant potential for further growth. Fund Capacity Total current capacity in the funds of c.$12.0 billion of which
Slide 20: Polar Capital Disclaimer
Polar Capital Disclaimer POLAR CAPITAL House View This document has been produced based on Polar Capital research and analysis and represents our house view. All sources are Polar Capital unless otherwise stated. Important Information The information provided in this document is for the sole use of
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