Artisan Partners Asset Management Inc. · NYSE:APAM
Artisan Partners Asset Management — Q1 2013 Earnings Presentation
20 slides from Artisan Partners Asset Management's earnings presentation, Apr 30, 2013
Slide 1: Business Update and First Quarter 2013 Earnings Presentation
B U S I N E S S U P D A T E A N D F I R S T Q U A R T E R 2 0 1 3 E A R N I N G S P R E S E N T A T I O N Artisan Partners Asset Management
Slide 2: Business Update & Quarterly Results Discussion
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 1 BUSINESS UPDATE & QUARTERLY RESULTS DISCUSSION Eric R. Colson is President and Chief Executive Officer of Artisan Partners. Prior to joining the firm in January 2005, Mr. Colson was an executive vice president of Callan Associates, Inc. w
Slide 3: Firm Facts
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 2 FIRM FACTS management team Andrew A. Ziegler Executive Chairman Eric R. Colson Chief Executive Officer Charles (C.J.) Daley, Jr. Chief Financial Officer Janet D. Olsen Chief Legal Officer Dean J. Patenaude Executive Vice President – Globa
Slide 4: Business Philosophy & Approach
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 3 BUSINESS PHILOSOPHY & APPROACH Growth-Oriented Culture Active Strategies Autonomous Franchises Proven Results Designed for Investment Talent to Thrive Managed by Business Professionals Structured to Align Interests Based on Actively Ident
Slide 5: Business Strategy
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 4 BUSINESS STRATEGY Globalization Investment Policy Evolution Open Architecture Solutions Secular Market Trends Long-Term Growth Strategy Investment Freedom Leveraged Distribution Global Business Growth Talent Focus Strong Long-Term Investm
Slide 6: Talent Focus
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 5 TALENT FOCUS Global Equity Team Promotions Equity Participation Alternatives and Emerging Markets networking Characteristics Business Model Fit Institutional Viability Cultural Fit Team and Product Philosophy Development Strategy De
Slide 7: Long-Term Investment Performance
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 6 Non-U.S. Growth Strategy 1/1/96 20.6$ Non-U.S. Small-Cap Growth Strategy 1/1/02 1.4$ Global Equity Strategy 4/1/10 $ <0.1 U.S. Mid-Cap Value Strategy 4/1/99 12.9$ U.S. Small-Cap Value Strategy 6/1/97 4.2$ Value Equity Strategy 7/1/05 2.2$
Slide 8: Investment Performance — Outperformance and Rankings
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 7 96% 4% % of AUM By Overall Lipper Ranking (as of 3/31/2013) 1st Quartile 2nd - 4th Quartile 90% 10% % of AUM By Overall Morningstar RatingTM (as of 3/31/2013) 5 or 4 Star Rating 3, 2, or 1 Star Rating INVESTMENT PERFORMANCE — Outperforman
Slide 9: Asset Diversification
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 8 Global Equity 27% Global Value 28% U.S. Value 23% Growth 20% Emerging Markets 2% ASSET DIVERSIFICATION AUM by Distribution Channel1 As of March 31, 2013. 1The allocation of AUM by distribution channel involves the use of estimates and the
Slide 10: Summary of First Quarter 2013 Results
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 9 AUM increased 11.9% to $83.2 billion, the highest quarter-end level in the firm’s history Average AUM was $79.2 billion Total net flows of $2.2 billion resulting in 11.9% annualized organic growth Operating margin of (284.3)% Ne
Slide 11: Assets Under Management & Net Client Cash Flows
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 10 ASSETS UNDER MANAGEMENT & NET CLIENT CASH FLOWS (in billions) $66.5 $64.1 $69.8 $74.3 $83.2 $62.9 $63.6 $66.8 $71.3 $79.2 1Q12 2Q12 3Q12 4Q12 1Q13 Assets Under Management Ending Assets Under Management Average Assets Under Management $1.
Slide 12: Global Distribution
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 11 GLOBAL DISTRIBUTION (in billions) $1.3 $1.0 $1.0 $0.6 $1.6 $0.1 $0.3 $0.5 $0.9 $0.6 1Q12 2Q12 3Q12 4Q12 1Q13 U.S. vs. Non-U.S. Client Net Flows U.S. Non-U.S. 8% 9% 10% 11% 11% $5.6 $5.7 $6.7 $7.9 $9.2 1Q12 2Q12 3Q12 4Q12 1Q13 Non-U.S. Cl
Slide 13: Financial Results — Financial Highlights
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 12 39.6% 40.4% 37.0% 3.8% 28.7% (284.3)% 1Q12 4Q12 1Q13 Operating Margin Adjusted Operating Margin Operating Margin (GAAP) FINANCIAL RESULTS — Financial Highlights $62.9 $71.3 $79.2 1Q12 4Q12 1Q13 Average Total AUM (in billions) $119.7 $137
Slide 14: Compensation and Benefits
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 13 Total compensation and benefits increase in the March 2013 quarter was driven by compensation charges related to the reorganization of the Company’s capital structure from a private partnership to a public company. Salary & Incentive
Slide 15: Financial Results — Capital Management
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 14 FINANCIAL RESULTS — Capital Management ¹ Calculated in accordance with debt agreements. 1.4x 0.9x 4Q12 1Q13 Leverage Ratio1 $141.2 $199.1 4Q12 1Q13 Cash (in millions) $290.0 $200.0 4Q12 1Q13 Borrowings (in millions) $(672.7) $5.8 4Q12 1Q
Slide 16: Appendix
APPENDIX
Slide 17: Reconciliation of GAAP to Non-GAAP (Adjusted) Measures
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 16 RECONCILIATION OF GAAP TO NON-GAAP (“ADJUSTED”) MEASURES March 31, December 31, March 31, 2013 2012 2012 Net income attributable to Artisan Partners Asset Management Inc. (GAAP) $3.0 $— $— Add back: Net income (loss) attributable to nonc
Slide 18: Long-Term Investment Results
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 17 LONG-TERM INVESTMENT RESULTS Average Annual Value Add As of March 31, 2013 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr Inception Since Inception (bp) Global Equity Team Artisan Non-U.S. Growth (Inception: 1-Jan-96) 16.52% 11.53% 3.08% 5.26% 12.90% 11.39%
Slide 19: Notes & Disclosures — Forward-Looking Statements
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 18 NOTES & DISCLOSURES Forward-Looking Statements Certain information in this presentation, and other written or oral statements made by or on behalf of Artisan Partners, are “forward-looking statements” within the meaning of the federal se
Slide 20: Notes & Disclosures
a r t i s a n p a r t n e r s a s s e t m a n a g e m e n t 19 NOTES & DISCLOSURES Ratings are based on risk-adjusted returns and are historical and do not represent future results. The Overall Morningstar RatingTM for a fund is derived from a weighted average of the performance figures associated w
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