Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — FY2000 Earnings Presentation
20 slides from Invesco's earnings presentation, 2001
Slide 1: 2000 Year End Results
2000 YEAR END RESULTS Charles W. Brady Robert F. McCullough
Slide 2: Year in Review
YEAR IN REVIEW • Record financial results • Year of major market corrections • Record gross and net new business • Completed Trimark and Perpetual acquisitions -- created market leadership positions • Continued strong investment performance -- positive net flows every quarter • Management changes to
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS • Revenues of £1,628.7m, up £556.3m from 1999 • Pre-tax profits (pre-exceptional and goodwill amortization) of £554.5m, up £234.7m • EPS (pre-exceptional and goodwill amortization) – Basic -- 55.7p ($1.66 per ADR) -- up 64% – Diluted -- 53.0p ($1.58 per ADR) -- up 62% • EBITDA o
Slide 4: Financial Highlights - Q4
FINANCIAL HIGHLIGHTS - Q4 • Revenues of £428.5m, up £132.8m from 1999 • Pre-tax profits (pre-exceptional and goodwill amortization) of £139.5m, up £51.5m • EPS (pre-exceptional and goodwill amortization) – Basic -- 13.0p ($0.39 per ADR) -- up 35% – Diluted -- 12.4p ($0.37 per ADR) -- up 35% • EBITDA
Slide 5: Managed Products
Managed Products • Record financial results – Revenues up 65% – Operating profit up 78% – Gross sales of $79bn, up 92% • Positive net flows for 17 consecutive quarters • AIM and INVESCO combined rank as 5th largest fund group in US • AIM Canada - 2nd largest in one of the world’s largest capital mar
Slide 6: US Institutional
US Institutional • Generated $13.7bn of gross new business • Broad product range adds to marketing success – Two mandates in new global balanced product range ($2bn in new business) – Structured US equity products attracting non- US institutions – Alternative asset and real estate products completed
Slide 7: INVESCO Global
INVESCO Global • Record financial results – Operating profits up 82% – Net sales of $10bn -- double the 1999 levels – FUM of $73bn, up 28% – All locations operating at a profit • Continental Europe net sales up 78% in 2000 • MPF campaign successfully launched in Hong Kong • Perpetual acquisition com
Slide 8: INVESCO Retirement
INVESCO Retirement • Assets under administration of $27.6bn at end of 2000 - 82% with AVZ entities - 17% growth in year • Record financial results • Over 380,000 plan participants, up 13% • Federal Trust charter received in December • International DC activities continue 8
Slide 9: Financial Review
FINANCIAL REVIEW Robert F. McCullough
Slide 10: Summary Profit & Loss Account - YTD
SUMMARY PROFIT & LOSS ACCOUNT - YTD in thousands Ordinary Exceptional activities item Total 1999 Revenues £1,628,662 £ -- £1,628,662 £1,072,350 Operating expenses (1,039,751) (51,804) (1,091,555) (719,637) Operating profit before amortization 588,911 (51,804) 537,107 352,713 Profit before taxation 4
Slide 11: Quarterly Financial Comparisons
QUARTERLY FINANCIAL COMPARISONS in thousands 2000 1999 Q4 Q4 % change Revenues £ 428,451 £ 295,699 45% Operating profit (before exceptional item & goodwill amortization) 150,906 94,365 60% Profit before tax (before exceptional item & goodwill amortization) 139,468 88,022 58% EBITDA 171,025 117,914 4
Slide 12: EPS Comparisons
EPS COMPARISONS Full Year Fourth Quarter 2000 1999 2000 1999 Earnings per ordinary share (before goodwill and exceptional item) -Basic 55.7p 34.0p 13.0p 9.6p -Diluted 53.0p 32.7p 12.4p 9.2p -Diluted per ADR at $1.49 $1.58 $0.97 $0.37 $0.27 -Diluted per ADR at $1.62 $1.72 $1.06 $0.40 $0.30 Earnings p
Slide 13: Segmental Analysis of Operating Profits
SEGMENTAL ANALYSIS OF OPERATING PROFITS in thousands 2000 1999 Incr/(Decr) Managed Products £ 512,968 £ 287,902 £ 225,066 US Institutional 45,382 60,324 (14,942) INVESCO Global 90,006 49,573 40,433 INVESCO Retirement 3,957 (2,940) 6,897 New Business Expenses (15,422) (11,840) (3,582) Corporate (47,9
Slide 14: Funds Under Management - YTD
FUNDS UNDER MANAGEMENT - YTD in billions Managed Products Total AIM INVESCO US Inst Global Dec 31, 1999 $357.4 $165.3 $34.4 $100.5 $57.2 Market gains/(loss) (32.8) (19.5) (5.5) 0.6 (8.4) Acquisitions: -Trimark 16.7 16.7 - - - -Perpetual 17.4 - - - 17.4 Net new (lost) business 35.4 20.4 13.0 (8.0) 10
Slide 15: Funds Under Management - Q4
FUNDS UNDER MANAGEMENT - Q4 in billions Managed Products US INVESCO Total AIM INVESCO Inst Global Sept 30, 2000 $ 414.4 $ 208.2 $ 50.9 $ 95.7 $ 59.6 Market gains (losses) (40.0) (23.3) (10.0) (1.0) (5.7) Perpetual acquisition 17.4 - - - 17.4 Net new (lost) business 5.1 3.5 2.2 (1.5) 0.9 Change in US
Slide 16: Balance Sheet
BALANCE SHEET in thousands Dec 31, 2000 Dec 31, 1999 Fixed assets Goodwill £ 2,375,542 £ 664,135 Investments 152,521 128,921 Tangible assets 203,341 108,021 2,731,404 901,077 Currents assets Debtors 686,101 550,343 Investments 114,671 60,135 Cash at bank and in hand 342,073 189,732 1,142,845 800,210
Slide 17: Analysis of Net Debt
ANALYSIS OF NET DEBT in thousands December 31, 2000 December 31, 1999 (Decrease)/Increase £ $ £ $ £ $ Current Debt 15,293 22,787 - - 15,293 22,787 Long-term Debt: Senior notes 444,201 650,000 405,035 650,000 39,166 - Equity subordinated debentures 67,115 100,001 - - 67,115 100,001 Credit facility 30
Slide 18: Dividend History
DIVIDEND HISTORY 2000 1999 1998 1997 1996 Dividend per share Interim 4.00p 3.50p 3.00p 2.50p 2.00p Final 6.00p 5.50p 5.00p 4.50p 4.00p Total 10.00p 9.00p 8.00p 7.00p 6.00p Dividends (£000) 75,827 58,244 50,594 39,462 16,952 % increase per share 11% 13% 14% 17% 4% dividends 30% 15% 28% 133% 22% % of
Slide 19: Number of Shares
NUMBER OF SHARES in thousands Actual Number of Estimated Shares Outstanding Average Shares 2000 2001 Ordinary shares 771,038 771,977 Exchangeable shares 43,559 47,171 Less: ESOT shares (17,712) (13,496) Shares outstanding 796, 885 805,652 Shares reserved for: Options 79,374 30,209 ESD's 6,181 2,178
Slide 20: Global Investment Services
AW AMVESCAP Global Investment Services