Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — Q1 2001 Earnings Presentation
19 slides from Invesco's earnings presentation, 2001
Slide 1: 2001 First Quarter Results
2001 FIRST QUARTER RESULTS Charles W. Brady Robert F. McCullough
Slide 2: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS • Positive net flows in each business group ($3.1bn) • Emphasis on cost controls in extremely volatile market conditions • Initiated Private Wealth Management unit -- recruited senior management member to lead effort • Completed County acquisition in January • National Asset
Slide 3: National Asset Management Acquisition
NATIONAL ASSET MANAGEMENT ACQUISITION • Broadens product offerings and adds complementary investment styles. • Completed April 18, 2001. Results included from Q2. • Consideration includes: – $200 million in equal amounts of cash and ordinary shares – Contingent earn out over 3 years up to $75 millio
Slide 4: Financial Highlights - First Quarter 2001
FINANCIAL HIGHLIGHTS - FIRST QUARTER 2001 • Revenues of £427.3m, up £57.8 from 2000 • Pre-tax profits (before exceptional item and goodwill amortization) of £135.0m, up £10.3m • EBITDA of £166.6m, up £20.1m • Diluted EPS of 11.1p ($0.32 per ADS), down 11% • Funds under management of $370.3bn (£260.8
Slide 5: Financial Review
FINANCIAL REVIEW Robert F. McCullough
Slide 6: Group Profit & Loss Account
GROUP PROFIT & LOSS ACCOUNT in thousands Three Months Ended March 31, 2001 Ordinary Exceptional activities item Total 2000 Revenues £ 427,277 £ - £ 427,277 £ 369,516 Operating expenses (281,017) (4,207) (285,224) (237,641) 146,260 (4,207) 142,053 131,875 Goodwill amortization (31,811) - (31,811) (9,
Slide 7: Quarterly Financial Comparisons
QUARTERLY FINANCIAL COMPARISONS in thousands 2001 2000 Q1 Q4 change % change Revenues £ 427,277 £ 428,451 (1,174) (0.3)% Operating profit (before exceptional item & goodwill amortization) 146,260 150,906 (4,646) (3.1)% Profit before tax (before exceptional item & goodwill amortization) 134,955 139,4
Slide 8: EPS Comparisons
EPS COMPARISONS First Quarter 2001 2000 Earnings per share (before exceptional item and goodwill amortization) -Basic 11.5p 13.1p -Diluted 11.1p 12.5p -Diluted per ADR at $1.42 $0.32 $0.36 -Diluted per ADR at $1.59 $0.35 $0.40 Earnings per share (before goodwill amortization) -Basic 11.0p 13.1p -Dil
Slide 9: Segmental Analysis - First Qtr 2001
SEGMENTAL ANALYSIS - FIRST QTR 2001 in thousands Revenues Expenses Oper. Profit Managed Products £ 265,229 £ (147,913) £ 117,316 U.S. Institutional 51,520 (38,182) 13,338 INVESCO Global 96,606 (71,609) 24,997 INVESCO Retirement 13,667 (11,353) 2,314 New Business Expense 255 (3,120) (2,865) Corporate
Slide 10: Segmental Analysis of Operating Profits
SEGMENTAL ANALYSIS OF OPERATING PROFITS in thousands 2001 2000 Incr/(Decr) Managed Products £ 117,316 £ 108,100 £ 9,216 U.S. Institutional 13,338 14,369 (1,031) INVESCO Global 24,997 25,916 (919) INVESCO Retirement 2,314 6 2,308 New Business Expenses (2,865) (2,994) 129 Corporate (8,840) (13,522) 4,
Slide 11: Funds Under Management
FUNDS UNDER MANAGEMENT Managed Products Total AIM INVESCO US Inst Global Dec 31, 2000 $402.6 $193.2 $43.2 $99.6 $66.6 Market gains/(losses) (42.8) (23.3) (9.7) (3.6) (6.2) Acquisitions 5.1 - - - 5.1 Net new (lost) business 3.1 1.0 1.0 0.2 0.9 Change in US Money Market Funds 4.5 5.1 (0.6) - - Transfe
Slide 12: Balance Sheet
BALANCE SHEET in thousands March 31, Dec 31, 2001 2000 Fixed assets Goodwill £ 2,385,125 £ 2,375,542 Investments 155,782 152,521 Tangible assets 206,142 203,341 2,747,049 2,731,404 Currents assets Debtors 706,525 686,101 Investments 106,538 124,311 Cash at bank and in hand 204,737 342,073 1,017,800
Slide 13: Number of Shares
NUMBER OF SHARES in thousands Number of Number of Shares Outstanding Shares Oustanding Dec 31, 2000 March 31, 2001 Ordinary shares 771,038 776,165 Exchangeable shares 43,559 41,180 Less: ESOT shares (17,712) (16,495) Shares outstanding 796, 885 800,850 Shares reserved for: Options 79,374 76,150 ESD'
Slide 14: Group Cash Flow Statement
GROUP CASH FLOW STATEMENT in thousands Three Months Ended March 31, 2001 2000 Operating profit £ 110,242 £ 122,576 Amortization and depreciation 49,167 20,486 Change in debtors, creditors and other (23,440) 5,055 Net cash inflow from operating activities 135,969 148,117 Banking and insurance activit
Slide 15: Analysis of Net Debt
ANALYSIS OF NET DEBT in thousands March 31, 2001 Dec 31, 2000 (Decrease)/Increase £ $ £ $ £ $ Current Debt 9,245 13,128 15,293 22,787 (6,048) (9,659) Long-term Debt: Senior notes 455,789 650,000 444,201 650,000 11,588 - Equity subordinated debentures 66,114 93,882 67,115 100,001 (1,001) (6,119) Cred
Slide 16: Headcount
HEADCOUNT March 31, Dec 31, 2001 2000 Managed Products 4,785 4,741 U.S. Institutional 785 789 INVESCO Global 2,347 2,150 INVESCO Retirement 422 407 New Business Expense 100 106 Corporate 82 66 8,521 8,259 16
Slide 17: US GAAP Reconciliation (Profit)
US GAAP RECONCILIATION (PROFIT) in thousands Three Months Ended March 31, 2001 2000 Net profit under UK GAAP £ 55,751 £ 75,464 US GAAP adjustments: Acquisition accounting (17,028) (15,406) Taxation (10,126) (17,046) Other 288 (61) Net income under US GAAP £ 28,885 £ 42,951 17
Slide 18: US GAAP Reconciliation (Equity)
US GAAP RECONCILIATION (EQUITY) in thousands March 31, 2001 Dec 31, 2000 Shareholders' funds under UK GAAP £ 2,151,836 £ 2,103,080 US GAAP adjustments: Acquisition accounting 1,028,846 1,020,052 Treasury stock (176,986) (168,292) Dividends - 47,813 Other 14,848 15,968 Shareholders' equity under US G
Slide 19: Global Investment Services
—A\y AMVESCAP Global Investment Services