Polar Capital Holdings Plc · LSE:POLR
Polar Capital — H1 2008 Earnings Presentation
15 slides from Polar Capital's earnings presentation, Dec 11, 2007
Slide 1: Polar Capital Holdings Plc 2007 Interim Results
POLAR CAPITAL HOLDINGS PLC 2007 Interim Results 11 December 2007 POLAR CAPITAL HOLDINGS plc
Slide 2: Contents
Contents • Financial Highlights • Financial Review • Fund Flows and Performance • Outlook • Overview of Polar Capital POLAR 1 CAPITAL HOLDINGS plc
Slide 3: Financial Highlights
Financial Highlights • Assets under management at 30 September 2007 up 46% to $3.8bn compared to prior year period (September 2006: $2.6bn and March 2007: $3.4bn) • Pre-tax profitability up over 100% to £4.5m (September 2006: £1.1m) • Core pre-tax profit, excluding performance fees, up 173% at £3.4m
Slide 4: Assets Under Management
Assets Under Management 4.0 3.8 3.5 3.4 3.0 2.5 • 11% increase in AUM in 2.6 6 months to Sept 2007 $ billion 2.4 2.0 2.1 2.0 • 46% increase in AUM in 1.5 12 months to Sept 2007 1.0 0.5 0.0 Mar 2005 Sept 2005 Mar 2006 Sept 2006 Mar 2007 Sept 2007 POLAR 3 CAPITAL HOLDINGS plc
Slide 5: Management and Performance Fees
Management and Performance Fees Performance Fees Management Fees 30 • Chart shows split between 1st and 2nd six 25 25.8 months 20.6 20.1 20 • 44% increase in management fee income £ million 15.2 15 14.3 11.2 13.6 6 months to Sept 07 25.7 compared to 6 months to 10 6.3 7.5 19.6 Sept 06 13.6 4.4 5 8 7
Slide 6: Pre-tax Profits
Pre-tax Profits First half Second half 14 12 11.6 10.7 • 400% increase in profits 10 for first half of year compared to equivalent 8 period in period ended. £ million 10.2 6 9.6 • Second half profits 4.7 4.5 dominated by arrival of 4 performance fees. 3.2 4.5 2 1.5 1.4 1.1 0 To M arch 2005 To M arch
Slide 7: P&L Analysis
P&L Analysis 2006 2007 2008 1st Six 2nd Six 1st Six 2nd Six 1st Six Months Months Months Months Months Year Year Core Operating Profit 1.2 1.6 2.8 3.4 • Core profit for 1st six 1.4 0.5 1.9 months greater than Performance Fee Profit 0.1 7.9 8.0 0.3 whole y/e March 2007. - 10.3 10.3 Interest and Simil
Slide 8: Margin Improvement
Margin Improvement 6 months 6 months 6 months 6 months to March to Sept to March to Sept 2006 2006 2007 2007 • 20% increase in £m £m £m £m management fees March Management Fees 8.2 9.4 11.3 13.6 to Sept 2007. Operating Costs (7.7) (8.2) (9.7) (10.2) Core Operating Profit 0.5 1.2 1.6 3.4 • 5% increas
Slide 9: Share Capital
Share Capital 90 80 77.8 72.3 10.3 70 5.4 • 25% increase in year to March 2007 due to XL Share Capital / Million Shares 60 57.8 transaction and IPO. 54.5 7 50 11.2 • 7.6% increase in 6 40 months to Sept. 2007 due 67.5 30 66.9 to crystallisation of the 50.8 UK team. 43.3 20 10 0 To March 2005 To Marc
Slide 10: Diluted EPS
Diluted EPS 16 1 4.7 14 12.8 • EPS rise as of Sept 2007 12 reflection of increased profitability. 10 Pence per share • Decrease in March 2007 8 13 EPS effected by issuance of equity to XL and then 11.7 at the IPO. 6 4.1 • Without benefit of UK 4 team, EPS would have been 3.7p not 4.1p 2 4.1 1.7 1.1
Slide 11: Polar Capital – Fund Flows
Polar Capital – Fund Flows Managed Long Hedge and Total Advisory $m $m $m $m AUM at 31 March 2007 1,563 1,553 291 3,407 Long only transferred to hedge -95 95 - - Performance 50 75 -7 118 Net Subscription/redemptions -131 482 - 351 AUM at 30 Sept 2007 $1,387m $2,205m $284m $3,876m POLAR 10 CAPITAL HO
Slide 12: Fund Performance
Fund Performance Fund Fund Size Performance Performance Performance Sept 30th 2007 October 2007 November 2007 YTD $m Hedge Funds Technology 61 1.52% -6.42% -25.58% UK 109 0.73% -4.05% 4.06% Japan ARF 550 -1.16% -2.05% -5.56% European Forager 266 5.64% -8.44% 11.56% Paragon Fund 590 6.76% -4.23% 11.6
Slide 13: Outlook
Outlook • Market volatility creates a more challenging near term environment for asset raising. • Asset raising environment medium term is encouraging with the strong performance of some of our newer strategies. Utilities Macro 1% 2% Emerging Markets 13% Technology 26% Long Only 41% Global Opportuni
Slide 14: Outlook
Outlook • Continued strength of Forager and Paragon performance, and planned fund raisings. • Potential change of market leadership should favour strategies like Technology, Healthcare and possibly even Japan. • Recruitment continues to focus on adding 1 to 2 new strategies a year. Focused on Enviro
Slide 15: Disclaimer
Disclaimer This document does not constitute an offer to sell or an invitation to buy shares in Polar Capital Holdings plc or any other invitation or inducement to engage in investment activities. Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Compan
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