Impax Asset Management Group Plc · LSE:IPX
Impax Asset Management — FY2015 Earnings Presentation
29 slides from Impax Asset Management's earnings presentation, December 2015
Slide 1: Final results for the year ended 30 September 2015
Impax Asset Management Group plc Final results for the year ended 30 September 2015 CLEAR INVESTMENT
Slide 2: Agenda
Agenda Business update Ian Simm Chief Executive Financial results Q&A Charlie Ridge Chief Financial Officer CLEAR INVESTMENT 2
Slide 3: On track to meet our growth targets
On track to meet our growth targets Key developments AUM and advice increased to £2.8bn at year end, £3.0bn at 31 October 2015 Net inflows for the year Investment for continued growth has led to higher staff costs Strong listed equities performance and progress with product development Fun
Slide 4: Financial performance (year to September 2015)
Financial performance (year to 30 September 2015) 2015 2014 1 Assets under management and advice £2,823m £2,757m Revenue £19.7m £20.4m Operating earnings2 £3.1m £5.3m Profit/(Loss) before tax £5.1m £3.5m Shareholders’ equity £25.9m £24.9m Cash reserves £19.3m £17.2m Final dividend (full year) 1.2p (
Slide 5: Investing since 1998 (financial year)
Investing since 1998 (financial year) FY AUM (£m) 1998 15 1999 20 Phase 1: 2000 39 Establishing the business 2001 38 2002 55 2003 66 2004 69 2005 214 Phase 2: 2006 429 Scale up to critical mass 2007 982 2008 1,099 2009 1,265 Phase 3: 2010 1,823 Consolidation & investment 1,896 2011 2012 1,828 2013 2
Slide 6: Successful history of innovation
Successful history of innovation LISTED EQUITIES INCEPTION DATE AUM1 REAL ASSETS INCEPTION DATE AUM1 Impax New Energy Specialists Mar 2002 £789m Investors I LP 2005 £71m Established Leaders Mar 2008 £617m Impax New Energy 2010 £242m Investors II LP Water Jan 2009 £1.0bn Impax Climate 2009 £22m Prope
Slide 7: Global distribution capabilities
Global distribution capabilities Combination of direct and third party sales UK / Ireland IEM plc Europe BNP Paribas UCITS Platform North America ASN Bank PaxWorld London Delaware funds platform Asia Pacific Portland BNP Paribas in Hong Kong New York and Australia Hong Kong Impax office CLEAR INVEST
Slide 8: Listed Equities update
Listed Equities update Strong performance from three major strategies: Leaders, Water and Specialists outperformed MSCI ACWI Robust flows into Leaders and Water from Continental European investors New segregated account for Specialists Food & Agriculture strategy, approaching 3 year track re
Slide 9: Sustainable food: the opportunity
Sustainable food: the opportunity Investing across the value chain Basic Foods & Growers & Inputs Technology & Logistics Food Safety Ingredients Sustainable Packaging Value Added Foods Distributors CLEAR INVESTMENT 9
Slide 10: Private Equity Infrastructure update
Private Equity Infrastructure update NEF II investment performance underpins future fund raising opportunities c NEF I Further progress with exits Progress with arbitration on retroactive tariffs in Spain NEF ll: planned realisation of operating assets Sale of 220MW wind assets in France and G
Slide 11: Sustainable Property update
Sustainable Property update c Exciting opportunity to create value through energy efficiency improvements; demand increasingly driven by stricter regulation On track to let and sell remaining asset in Fund I Progress on fundraising plans Advisory Board appointed and placement agent engaged c
Slide 12: Powerful catalysts in Resource Efficiency and Environmental Markets
Powerful catalysts in Resource Efficiency and Environmental Markets CALIFORNIA DROUGHT VOLKSWAGEN EMISSIONS SCANDAL CHINA 13TH FIVE YEAR PLAN UN CLIMATE CHANGE CONFERENCE Images sourced from Wikipedia Commons and Reuters. CLEAR INVESTMENT 12
Slide 13: Notable rise in investor interest in all our strategies
Notable rise in investor interest in all our strategies CLEAR INVESTMENT 13
Slide 14: Breakdown of AUM increase (listed equities)
Breakdown of AUM increase (listed equities) “IMPAX LABEL” FUNDS (£m) THIRD PARTY FUNDS/ACCOUNTS (£m) 30 September 2015 494 30 September 2015 1,995 Market movement (55) Market movement (216) Inflows 12 Inflows 400 Outflows (20) Outflows (390) 31 March 2015 557 31 March 2015 2,201 Market movement 53 M
Slide 15: Financial highlights
Financial highlights Operating performance REVENUE (£m) OPERATING COSTS (£m) OPERATING EARNINGS (£m) 2015 19.7 2015 3.1 2015 62.0% 22.3% 16.6 Private Equity and Financing 2.4 Fees 2014 5.3 Listed Equity 2014 53.4% 20.1% 15.0 Flows and 1.4 Performance Staff costs Other costs (% of revenue) (% of reve
Slide 16: Financial highlights (2)
Financial highlights (2) Earnings and dividends DILUTED EPS (p) DIVIDEND (p) 2015 0.4 1.2 0.5 2.1 2015 3.13 2014 1.40 Effect of share buy 0.06 backs and dilution 2013 0.90 Effect of tax (0.41) 2012 0.75 adjustments Decrease in 2011 0.70 (1.44) operating earnings 2010 0.60 NIC release due to 0.89 200
Slide 17: Financial highlights (3)
Financial highlights (3) Cash and investments INVESTMENTS¹ (£M) CASH RESERVES (£M) CASH RESERVE ANALYSIS (£M) Cash as at 30 Sept 2015 19.3 19.3 30 Sept 2015 4.1 3.3 7.4 30 Sept 2015 Working capital (2.3) Risk buffer 5.0 Fair value Investment hedges Short term (0.7) 0.2 (0.1) changes and treasury inc
Slide 18: Financial highlights (4)
Financial highlights (4) Balance sheet CURRENT ASSETS (£m) SHARE MANAGEMENT (m) Potential available Shares in 27.8 127.7 current assets issue Share buy Cash on exercise of (13.7) 6 backs ESOP options Averaging Available current 1.0 effect 21.8 assets Basic shares 115.1 Seed investments 7.4 ESOP/RSS
Slide 19: IPX shareholder register
IPX shareholder register Significant staff ownership Free float 39% BNP Paribas Investment Partners 25% Employees1 25% Held in trust in respect of employee equity awards 11% IPX ordinary shares (total 127.7m) Employee and Trust holdings 45.4m (35.5%). 13.7m (10.7%) relates to shares held for Emp
Slide 20: Outlook
Outlook High growth global equities Growth strategies An acknowledged leader globally Strong investment consultant endorsement Stable expert team Performance and capacity 4 scalable strategies at critical mass 3 more strategies to be scaled Strengthened UK coverage Strong distribution
Slide 21: Important information
Important information This document has been prepared by Impax Asset Management Group plc and approved by Impax Asset Management Limited and Impax Asset Management (AIFM) Limited (“Impax”, authorised and regulated by the Financial Conduct Authority). Both companies are wholly owned subsidiaries of I
Slide 22: Appendix
Appendix CLEAR INVESTMENT 22
Slide 23: Extensive expertise
Extensive expertise Ian Charlie Simm Ridge Chief Executive CFO 26 years 29 years Bruce Peter Jenkyn-Jones Rossbach MD, Head of Listed Equities MD, Head of Private Equity 25 years 35 years David Richardson Roz MD, Global Head of Marketing Reid & Client Services Director of HR 33 years 25 years CLEAR
Slide 24: Resource Efficiency and Environmental Markets: Diverse listed equity opportunities
Resource Efficiency and Environmental Markets: Diverse listed equity opportunities (FTSE classification) Energy Water Energy Efficiency Alternative Energy Water Pollution Control Infrastructure & ■ Power Network ■ Developers & IPPs Technologies ■ Pollution Control ■ Industrials ■ Solar Solutions ■ I
Slide 25: Climate change and investment risk
Climate change and investment risk CLEAR INVESTMENT 25
Slide 26: Impax investment universe is growing rapidly
Impax investment universe is growing rapidly Large universe of growing companies NUMBER OF COMPANIES 1,500 Resource efficiency Diverse range of opportunities 400 business exposure: 20-50% Cyclical >50% Defensive Special Situations 1,100 Higher Expected Earnings Growth 10%1 forward EPS growth v
Slide 27: Income statement
Income statement Year Year Ended Ended 2015 2014 £'000 £'000 Revenue 19,726 20,359 Bonuses pool (3,952) (4,377) Other operating costs (12,664) (10,661) Operating costs (16,616) (15,039) Operating earnings 3,110 5,320 Other charges related to EIA schemes 1,285 (539) Fair value (losses)/gains 615 (1,4
Slide 28: Balance sheet
Balance sheet 30 Sept 2015 30 Sept 2014 £'000 £'000 Goodwill and intangibles 1,754 1,772 Other non-current assets 201 262 1,955 2,034 Cash and cash equivalents 19,517 17,249 Current asset investments 7,419 11,640 Other current assets 4,980 3,568 Total assets 33,871 34,491 Current liabilities 5,510 7
Slide 29: Impax seed investments
Impax seed investments 1 % of Investments Initial Theme Principal funds / Investee Fund (£m) Investment Date AUM Food & Agriculture Impax Food and Agriculture Fund 2.2 95% Dec-12 Global Equities Impax Global Equity Opportunities 1.9 99% Dec-14 Opportunity fund fund Impax New Energy Investors LP 0.6
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