Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — H1 2002 Earnings Presentation
22 slides from Invesco's earnings presentation, Aug 2, 2002
Slide 1: 2002 Interim Results
AMVESCAP Helping people worldwide build their financial security 2002 Interim Results Charles W. Brady, Executive Chairman Robert F. McCullough, Chief Financial Officer August 2, 2002
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: Half Year Summary
Half Year Summary Difficult general business environment– volatile markets and loss of investor confidence. Emphasis remains on cost controls – margin improved in Q2 to 29.3%. INVESCO Retirement set record number of S/H accounts. Canada continues strong in gross and net sales (#1 for seven m
Slide 4: Half Year Summary
Half Year Summary Added focus on investment risk management and portfolio reviews. Overall, investment performance is good. fAIM – equities rebalanced (46% - core; 33% - growth; 21% - other) fIFG – 31% of assets in top 2 quartiles (3 year) – 80% in 3-5 star grouping fCanada – 69% of assets ranke
Slide 5: Financial Summary – First Half 2002
Financial Summary – First Half 2002 Revenues at £746.7m, down 13% from prior year. Pre-tax profits (before goodwill and exceptional items) of £192.5, down 29%. Diluted EPS (before goodwill and exceptional items) of 16.2p, down 28% from prior year. Funds under management of $364.0bn, down $33
Slide 6: Financial Review
AMVESCAP Financial Review
Slide 7: Group Profit & Loss Account
Group Profit & Loss Account in thousands Six Months Ended June 2002 2001 Revenues £746,685 £853,552 Expenses: Operating (533,722) (559,972) Exceptional (20,067) (25,252) Goodwill amortization (73,688) (65,038) Operating profit 119,208 203,290 Investment income 6,812 5,865 Interest payable (27,241) (
Slide 8: Group Profit & Loss Account
Group Profit & Loss Account in thousands Three Months Ended June 2002 2001 Revenues £368,936 £426,275 Expenses: Operating (260,821) (278,955) Exceptional (20,067) (21,045) Goodwill amortization (36,851) (33,227) Operating profit 51,197 93,048 Investment income 159 2,864 Interest payable (13,203) (14
Slide 9: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2002 2002 Q2 Q1 % change Revenues £ 368,936 £ 377,749 (2.3%) Operating expenses 260,821 272,901 (4.4%) Operating profit 108,115 104,848 3.1% Operating margin 29.3% 27.8% 5.4% EBITDA 123,911 127,414 (2.7%) EPS - diluted 8.0p 8.2p (2.4%) EBITDA per share -
Slide 10: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2002 2001 Q2 Q2 % change Revenues £ 368,936 £ 426,275 (13.5%) Operating expenses 260,821 278,955 (6.5%) Operating profit 108,115 147,320 (26.6%) Operating margin 29.3% 34.6% (15.3%) EBITDA 123,911 168,244 (26.4%) EPS - diluted 8.0p 11.3p (29.2%) EBITDA pe
Slide 11: Operating Profit – 2001 V. 2002
Operating Profit – 2001 V. 2002 in thousands 2002 2001 Change Managed Products £ 185,422 £ 238,046 £ (52,624) INVESCO Institutional 23,106 26,730 (3,624) INVESCO Global 23,917 47,200 (23,283) INVESCO Retirement 1,514 4,133 (2,619) Private Wealth Management 980 928 52 New Business (5,820) (5,445) (37
Slide 12: Operating Profit – 2002 Q1 V. 2002 Q2
Operating Profit – 2002 Q1 V. 2002 Q2 Q2 Q1 in thousands 2002 2002 Change Managed Products £ 91,717 £ 93,705 £ (1,988) INVESCO Institutional 11,069 12,037 (968) INVESCO Global 11,944 11,973 (29) INVESCO Retirement 1,091 423 668 Private Wealth Management 925 55 870 New Business (2,973) (2,847) (126)
Slide 13: Funds Under Management
Funds Under Management in billions Managed Products INVESCO INVESCO Private Total AIM INVESCO Inst Global Wealth Dec 31, 2001 $397.9 $179.8 $31.4 $116.8 $60.0 $9.9 Market gains/(losses) (26.4) (13.7) (5.2) (4.0) (3.0) (0.5) Net new/(lost) business (3.4) (0.4) (1.6) (2.3) 1.0 (0.1) Change in money ma
Slide 14: Funds Under Management
Funds Under Management in billions Managed Products INVESCO INVESCO Private Total AIM INVESCO Inst Global Wealth March 31, 2002 $400.0 $182.0 $29.9 $116.2 $62.1 $9.8 Market gains/(losses) (27.7) (13.8) (4.3) (4.3) (4.8) (0.5) Net new/(lost) business (3.6) (0.8) (1.2) (1.3) (0.3) - Change in money ma
Slide 15: Balance Sheet
Balance Sheet in thousands June 30, 2002 Dec 31, 2001 Fixed assets Goodwill £2,620,585 £2,693,659 Investments 237,577 166,036 Tangible assets 174,092 209,370 3,032,254 3,069,065 Currents assets Debtors 719,455 576,447 Investments 40,955 33,116 Cash 192,142 175,902 952,552 785,465 Creditors (885,239)
Slide 16: Group Cash Flow
Group Cash Flow in thousands Six Months Ended June 30, 2002 June 30, 2001 Operating profit £118,679 £194,609 Amortization and depreciation 104,519 99,739 Change in debtors, creditors, and other 33,148 (19,026) Net cash inflow from operating activities 256,346 275,322 Banking and insurance activities
Slide 17: Analysis Of Net Debt
Analysis Of Net Debt in thousands June 30, 2002 December 31, 2001 (Decrease)/Increase £ $ £ $ £ $ Senior notes ($250m) 164,474 250,000 172,414 250,000 (7,940) - Senior notes ($700m) 460,526 700,000 482,759 700,000 (22,233) - Credit facility 203,947 310,000 106,919 155,032 97,028 154,968 Equity subor
Slide 18: Average Shares Outstanding
Average Shares Outstanding June 30, March 31, Dec 31, in thousands 2002 2002 2001 Ordinary shares 772,906 772,411 763,977 Exchangeable shares 39,304 39,476 41,084 Shares outstanding 812,210 811,887 805,061 Shares reserved for: Options 15,104 17,837 24,922 Total shares 827,314 829,724 829,983 18
Slide 19: Headcount
Headcount June 30, March 31, Dec 31, 2002 2002 2001 Managed Products 4,087 4,222 4,346 INVESCO Institutional 853 870 868 INVESCO Global 2,245 2,229 2,334 INVESCO Retirement 563 559 561 Private Wealth 238 234 252 New Business 78 74 76 Corporate 79 83 82 8,143 8,271 8,519 19
Slide 20: US GAAP Reconciliation (Profit)
US GAAP Reconciliation (Profit) in thousands Six Months Ended June 30, 2002 2001 Net profit under UK GAAP £ 45,713 £ 105,961 US GAAP adjustments: Acquisition accounting 68,055 (16,610) Redundancy and reorganizations 12,794 - Taxation (8,845) (27,037) Other 1,642 577 Net income under US GAAP £ 119,35
Slide 21: US GAAP Reconciliation (Equity)
US GAAP Reconciliation (Equity) in thousands June 30, 2002 Dec 31, 2001 Shareholders' funds under UK GAAP £ 2,309,905 £ 2,281,464 US GAAP adjustments: Acquisition accounting 1,038,096 984,436 Redundancy and reorganizations 12,794 - Treasury stock (225,380) (186,134) Dividends 40,479 52,708 Other (19
Slide 22: 2002 Interim Results
AMVESCAP 2002 Interim Results