Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — H1 2003 Earnings Presentation
30 slides from Invesco's earnings presentation, Aug 1, 2003
Slide 1: 2003 Interim Results
AMVESCAP Helping people worldwide build their financial security 2003 Interim Results Charles W. Brady, Executive Chairman Mark H. Williamson, CEO, AIM Division Robert F. McCullough, Chief Financial Officer August 1, 2003
Slide 2: Forward-Looking Statement
Forward-Looking Statement Callers who access the call during the live transmission will be deemed to have solicited access to the call for the purposes of the UK Financial Services and Markets Act regime governing real-time financial promotion. The presentations that follow may include information t
Slide 3: Introductory Remarks
AMVESCAP Introductory Remarks Charles W. Brady, Executive Chairman
Slide 4: US Retail Discussion
AMVESCAP US Retail Discussion Mark H. Williamson, CEO, AIM Division
Slide 5: IFG Integration – Status Update
IFG Integration – Status Update Accomplished: ¢ Comprehensive internal review of product line ¢ Fund Board approval of distributor integration ¢ Fund Board approval of Product Rationalization Plan ¢ ADI assumption of IFG distribution responsibilities ¢ Assessment of personnel requirements and commun
Slide 6: IFG Integration – Timeline
IFG Integration – Timeline Timeline of Events ¢ June, 2003: Fund Boards approved fund mergers ¢ July 1, 2003: A I M Distributors Inc. took over distribution responsibilities of INVESCO’s U.S. retail products. Portfolio managers of acquiring funds took on management of target funds. ¢ September/Octob
Slide 7: Summary of Fund Reorganizations
Summary of Fund Reorganizations Target Fund Acquiring Fund AIM Global Energy Fund INVESCO Energy Fund AIM Global Financial Services Fund INVESCO Financial Services Fund AIM Global Science and Technology Fund INVESCO Technology Fund AIM Global Utilities Fund INVESCO Utilities Fund AIM International C
Slide 8: Financial Review
AMVESCAP Financial Review Robert F. McCullough, Chief Financial Officer
Slide 9: Group Profit & Loss Account
Group Profit & Loss Account in thousands Six Months Ended June 30, 2003 2002 Revenues £552,594 £746,685 Expenses: Operating (418,723) (533,722) Exceptional (62,094) (20,067) Goodwill amortization (74,838) (73,688) Operating profit (3,061) 119,208 Investment income 3,499 6,812 Interest expense (26,43
Slide 10: Group Profit & Loss Account
Group Profit & Loss Account in thousands Three Months Ended June 30, 2003 2002 Revenues £281,796 £368,936 Expenses: Operating (207,142) (260,821) Exceptional (62,094) (20,067) Goodwill amortization (37,492) (36,851) Operating profit (24,932) 51,197 Investment income 2,011 159 Interest expense (14,22
Slide 11: Exceptional Items
Exceptional Items £’000 2003 2002 Redundancy 31,054 14,381 US Retail reorganization 12,183 -- Lease costs 9,620 1,803 Acquisitions 2,326 -- Project costs & other 6,911 3,883 Total exceptional items 62,094 20,067 Total exceptional items net of tax 39,740 14,218 11
Slide 12: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2003 2003 Q2 Q1 % change Revenues £ 281,796 £ 270,798 4.1% Operating expenses 207,142 211,581 (2.1%) Operating profit 74,654 59,217 26.1% Operating margin 26.5% 21.9% 21.0% EBITDA 94,596 77,820 21.6% EPS - diluted 5.4p 4.2p 28.6% EBITDA per share - dilute
Slide 13: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2003 2002 Q2 Q2 % change Revenues £ 281,796 £ 368,936 (23.6%) Operating expenses 207,142 260,821 (20.6%) Operating profit 74,654 108,115 (30.9%) Operating margin 26.5% 29.3% (9.6%) EBITDA 94,596 123,911 (23.7%) EPS - diluted 5.4p 8.0p (32.5%) EBITDA per s
Slide 14: Segmental Analysis
Segmental Analysis in thousands Six Months Ended June 30, 2003 Revenues Expenses Oper. Profit* AIM US £239,708 (£150,944) £88,764 Canada 69,909 (37,221) 32,688 309,617 (188,165) 121,452 INVESCO US 83,703 (64,149) 19,554 UK 82,515 (74,368) 8,147 Europe/Asia 35,734 (37,551) (1,817) 201,952 (176,068) 2
Slide 15: Operating Profit – 2003 Q2 v. 2003 Q1
Operating Profit – 2003 Q2 V. 2003 Q1 in thousands Q2 Q1 2003 2003* Change AIM US £46,691 £42,073 4,618 Canada 17,023 15,665 1,358 63,714 57,738 5,976 INVESCO US 11,853 7,701 4,152 UK 6,918 1,229 5,689 Europe/Asia (372) (1,445) 1,073 18,399 7,485 10,914 Private Wealth/Retirement (159) (683) 524 Corp
Slide 16: Funds Under Management - YTD
Funds Under Management - YTD in billions AIM INVESCO Total US Canada US UK Europe/Asia PWM December 31, 2002 $332.6 $144.1 $22.0 $103.5 $34.0 $21.1 $7.9 Market gains/(loss) 16.7 8.5 0.2 4.3 2.4 0.8 0.5 Net new (lost) business (4.5) (2.8) 0.1 0.1 0.2 (1.6) (0.5) Change in MMF (4.5) (4.0) - - (0.5) -
Slide 17: Funds Under Management - QTD
Funds Under Management - QTD in billions AIM INVESCO Total US Canada US UK Europe/Asia PWM March 31, 2003 $318.5 $133.5 $21.6 $103.6 $30.8 $20.5 $8.5 Market gains/(loss) 23.9 10.7 1.8 5.1 4.1 1.5 0.7 Net new (lost) business (1.9) (0.8) - (0.8) 1.2 (1.2) (0.3) Change in MMF 2.1 2.4 - - (0.3) - - Tran
Slide 18: Balance Sheet
Balance Sheet in thousands June 30, 2003 Dec 31, 2002 Fixed assets Goodwill £2,464,908 £2,542,306 Investments 238,401 248,408 Tangible assets 185,592 197,060 2,888,901 2,987,774 Currents assets Debtors 915,053 725,547 Investments 73,258 69,195 Cash 307,052 355,111 1,295,363 1,149,853 Current liabili
Slide 19: Group Cash Flow
Group Cash Flow in thousands Six Months Ended June 30, 2003 2002 Operating profit £ (3,061) £119,208 Amortization and depreciation 109,884 105,238 Change in debtors, creditors and other 38,731 4,014 Net cash inflow from operating activities 145,554 228,460 Interest paid, net of investment income (21
Slide 20: Analysis Of Net Debt
Analysis Of Net Debt in thousands June 30, 2003 December 31, 2002 (Decrease)/Increase £ $ £ $ £ $ Senior notes ($250m) - - 155,280 250,000 (155,280) (250,000) Senior notes ($700m) 424,242 700,000 434,783 700,000 (10,541) - Senior notes ($350m) 212,121 350,000 - - 212,121 350,000 Credit facility 52,1
Slide 21: Average Shares Outstanding
Average Shares Outstanding in thousands June 30, 2003 March 31, 2003 Dec 31, 2002 Ordinary shares 768,945 769,678 771,692 Exchangeable shares 34,899 34,899 38,350 Shares outstanding 803,844 804,577 810,042 Shares reserved for: Long-term incentive plan - 2,633 - Options 2,109 1,789 9,476 Total shares
Slide 22: Headcount
Headcount June 30, Dec 31, 2003 2002 Change AIM US 2,644 2,857 (213) Canada 885 918 (33) 3,529 3,775 (246) INVESCO US 876 817 59 UK 1,260 1,428 (168) Europe/Asia 628 714 (86) 2,764 2,959 (195) Private Wealth/Retirement 761 770 (9) Corporate 56 77 (21) 7,110 7,581 (471) 22
Slide 23: US GAAP Reconciliation (Profit)
US GAAP Reconciliation (Profit) in thousands Six Months Ended June 30, 2003 2002 Net profit under UK GAAP £ (37,589) £ 45,713 US GAAP adjustments: Acquisition accounting 69,445 68,055 Redundancy and reorganizations 39,112 12,794 Taxation (12,375) (8,845) Other (717) 1,642 Net income under US GAAP £
Slide 24: US GAAP Reconciliation (Equity)
US GAAP Reconciliation (Equity) in thousands June 30, 2003 Dec 31, 2002 Shareholders' funds under UK GAAP £ 2,232,447 £ 2,283,488 US GAAP adjustments: Acquisition accounting 1,069,264 1,034,168 Redundancy and reorganizations 51,073 11,961 Treasury stock (167,621) (162,104) Dividends 40,512 52,656 Ot
Slide 25: Restatement of Quarterly Results for US Retail Realignment
AMVESCAP Restatement of Quarterly Results for US Retail Realignment
Slide 26: Q2 2002
Q2 2002 Operating Revenues Expenses Profit AUM* Headcount** AIM US £172,290 (£104,476) £67,814 $159.7 3,171 Canada 43,209 (19,306) 23,903 23.3 916 215,499 (123,782) 91,717 183.0 4,087 INVESCO US 51,481 (40,061) 11,420 111.2 853 UK 55,798 (44,453) 11,345 37.8 1,522 Europe/ Asia 21,406 (21,334) 72 23.
Slide 27: Q3 2002
Q3 2002 Operating Revenues Expenses Profit AUM* Headcount** AIM US £132,970 (£78,870) £54,100 $137.2 3,080 Canada 34,909 (16,963) 17,946 20.8 903 167,879 (95,833) 72,046 158.0 3,983 INVESCO US 51,789 (34,782) 17,007 103.0 858 UK 45,063 (40,577) 4,486 33.4 1,488 Europe/ Asia 21,096 (20,552) 544 21.5
Slide 28: Q4 2002
Q4 2002 Operating Revenues Expenses Profit AUM* Headcount** AIM US £127,532 (£79,973) £47,559 $144.1 2,857 Canada 34,219 (16,681) 17,538 22.0 918 161,751 (96,654) 65,097 166.1 3,775 INVESCO US 45,935 (36,298) 9,637 103.5 817 UK 42,705 (38,031) 4,674 34.0 1,428 Europe/ Asia 20,779 (21,386) (607) 21.1
Slide 29: Q1 2003
Q1 2003 Operating Revenues Expenses Profit AUM* Headcount** AIM US £119,107 (£77,034) £42,073 $133.5 2,739 Canada 33,417 (17,752) 15,665 21.6 917 152,524 (94,786) 57,738 155.1 3,656 INVESCO US 39,669 (31,968) 7,701 103.6 828 UK 40,742 (39,513) 1,229 30.8 1,365 Europe/ Asia 17,541 (18,986) (1,445) 20
Slide 30: 2003 Interim Results
AMVESCAP 2003 Interim Results