Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — Q3 2003 Earnings Presentation
19 slides from Invesco's earnings presentation, Oct 23, 2003
Slide 1: 2003 Third Quarter Results
AMVESCAP Helping people worldwide build their financial security 2003 Third Quarter Results Charles W. Brady, Executive Chairman John D. Rogers, CEO, INVESCO Division Robert F. McCullough, Chief Financial Officer October 23, 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: Financial Review
AMVESCAP Financial Review
Slide 4: Group Profit & Loss Account
Group Profit & Loss Account in thousands Three Months Ended Sept 30, 2003 2002 Revenues £304,257 £307,479 Expenses: Operating (216,848) (224,343) Goodwill amortization (37,095) (36,800) Operating profit 50,314 46,336 Investment income 1,203 654 Interest expense (11,418) (13,128) Profit before taxati
Slide 5: Group Profit & Loss Account
Group Profit & Loss Account in thousands Nine Months Ended Sept 30, 2003 2002 Revenues £856,851 £1,054,164 Expenses: Operating (635,571) (758,065) Exceptional (62,094) (20,067) Goodwill amortization (111,933) (110,488) Operating profit 47,253 165,544 Investment income 4,702 7,466 Interest expense (3
Slide 6: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2003 2003 Q3 Q2 % change Revenues £ 304,257 £ 281,796 8.0% Operating expenses 216,848 207,142 4.7% Operating profit 87,409 74,654 17.1% Operating margin 28.7% 26.5% 8.3% EBITDA 106,800 94,596 12.9% EPS - diluted 6.6p 5.4p 22.2% EBITDA per share - diluted
Slide 7: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2003 2002 Q3 Q3 % change Revenues £ 304,257 £ 307,479 (1.0%) Operating expenses 216,848 224,343 (3.3%) Operating profit 87,409 83,136 5.1% Operating margin 28.7% 27.0% 6.3% EBITDA 106,800 98,781 8.1% EPS - diluted 6.6p 6.0p 10.0% EBITDA per share - dilute
Slide 8: EPS Comparisons
EPS Comparisons Year to Date Third Quarter 2003 2002 2003 2002 Earnings per share (before goodwill and exceptional items) -Basic 16.3p 22.5p 6.7p 6.1p -Diluted 16.2p 22.2p 6.6p 6.0p -Diluted per ADR at $1.66 $0.54 $0.74 $0.22 $0.20 -Diluted per ADR at $1.57 $0.51 $0.70 $0.21 $0.19 Exchange rates: 9/
Slide 9: Cost Savings Reconciliation
Cost Savings Reconciliation STARTING POINT Base Run Rate Target Run Rate £ $ (C) £ $ Revenue 1,275(A) 1,900 1,275 1,900 Expenses 993(B) 1,480 893 1,330 Operating Profit 282 420 382 570 Opeating Margin 22.1% 22.1% 30.0% 30.0% CURRENT STATUS Q3 03 Actual Adj For FX (C) £ $ (D) £ $ Expenses 867 1,396 9
Slide 10: Segmental Analysis – 2003 Q3 V. 2003 Q2
Segmental Analysis – 2003 Q3 V. 2003 Q2 in thousands Q3 Q2 2003 2003 Change AIM US £48,417 £46,691 £1,726 Canada 23,007 17,023 5,984 71,424 63,714 7,710 INVESCO US 13,545 11,853 1,692 UK 10,626 6,918 3,708 Europe/Asia 1,494 (372) 1,866 25,665 18,399 7,266 Private Wealth/Retirement (2,015) (159) (1,8
Slide 11: Segmental Analysis - YTD
Segmental Analysis - YTD in thousands Nine Months Ended September 30, 2003 Revenues Expenses Oper. Profit* AIM US £361,886 £(224,705) £137,181 Canada 111,780 (56,085) 55,695 473,666 (280,790) 192,876 INVESCO US 137,210 (104,111) 33,099 UK 127,656 (108,883) 18,773 Europe/Asia 55,827 (56,150) (323) 32
Slide 12: Funds Under Management - QTD
Funds Under Management - QTD in billions AIM INVESCO Total US Canada US UK Europe/Asia PWM June 30, 2003 $347.6 $147.2 $25.4 $109.6 $34.1 $22.2 $9.1 Market gains 8.1 2.7 1.0 2.4 1.4 0.5 0.1 Net new (lost) business (4.3) (1.3) - (2.1) (0.4) (0.5) - Change in MMF (6.2) (6.3) - - - 0.1 - Transfers - -
Slide 13: 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 24.8 11.2 1.2 6.7 3.8 1.3 0.6 Net new (lost) business (8.8) (4.1) 0.1 (2.0) (0.2) (2.1) (0.5) Change in MMF (10.7) (10.3) - - (0.5) 0.
Slide 14: Balance Sheet
Balance Sheet in thousands Sept 30, 2003 Dec 31, 2002 Fixed assets Goodwill £2,427,988 £2,542,306 Investments 242,429 248,408 Tangible assets 178,341 197,060 2,848,758 2,987,774 Currents assets Debtors 1,000,318 725,547 Investments 71,240 69,195 Cash 289,885 355,111 1,361,443 1,149,853 Current liabi
Slide 15: Group Cash Flow
Group Cash Flow Nine Months Ended Sept 30, Sept 30, 2003 2002 Operating profit £47,253 £165,544 Amortization and depreciation 165,167 157,030 Change in debtors, creditors, and other 24,125 169,482 Net cash inflow from operating activities 236,545 492,056 Interest paid, net of investment income (35,3
Slide 16: Analysis Of Net Debt
Analysis Of Net Debt in thousands September 30, 2003 December 31, 2002 (Decrease)/Increase £ $ £ $ £ $ Senior notes ($250m) - - 155,280 250,000 (155,280) (250,000) Senior notes ($700m) 421,687 700,000 434,783 700,000 (13,096) - Senior notes ($350m) 210,843 350,000 - - 210,843 350,000 Credit facility
Slide 17: Headcount
Headcount Sept 30, June 30, Dec 31, Change Change 2003 2003 2002 Dec-Sept June-Sept AIM US 2,491 2,644 2,857 (366) (153) Canada 901 885 918 (17) 16 3,392 3,529 3,775 (383) (137) INVESCO US 859 876 817 42 (17) UK 1,213 1,260 1,428 (215) (47) Europe/Asia 620 628 714 (94) (8) 2,692 2,764 2,959 (267) -
Slide 18: Average Shares Outstanding
Average Shares Outstanding in thousands Sept 30, 2003 June 30, 2003 Dec 31, 2002 Ordinary shares 768,642 768,945 771,692 Exchangeable shares 34,899 34,899 38,350 Shares outstanding 803,541 803,844 810,042 Shares reserved for: Options 2,987 2,109 9,476 Total shares 806,528 805,953 819,518 18
Slide 19: 2003 Third Quarter Results
AMVESCAP 2003 Third Quarter Results