Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — Q1 2003 Earnings Presentation
23 slides from Invesco's earnings presentation, Apr 29, 2003
Slide 1: 2003 First Quarter Results
AMVESCAP Helping people worldwide build their financial security 2003 First Quarter Results Charles W. Brady, Executive Chairman Mark H. Williamson, CEO, AIM Division Robert F. McCullough, Chief Financial Officer April 29, 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: Agenda
Agenda ¢ Quarter in Review – Charles Brady ¢ AIM Division Update – Mark Williamson ¢ Financial Review – Robert McCullough ¢ Questions – Charles Brady 3
Slide 4: Financial Review
AMVESCAP Financial Review
Slide 5: Summary Profit & Loss Account
Summary Profit & Loss Account in thousands Three Months Ended March 31, 2003 2002 Revenues £270,798 £377,749 Expenses Operating (211,581) (272,901) Goodwill amortization (37,346) (36,837) Operating profit 21,871 68,011 Investment income 1,488 6,653 Interest payable (12,210) (14,038) Profit before ta
Slide 6: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2003 2002 Q1 Q4 % change Revenues £ 270,798 £ 291,099 -7% Operating expenses 211,581 220,273 -4% Operating profit 59,217 70,826 -16% Operating margin 21.9% 24.3% -10% EBITDA 77,820 83,612 -7% EPS - diluted 4.2p 5.0p -16% EBITDA per share - diluted 9.6p 10
Slide 7: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2003 2002 Q1 Q1 % change Revenues £ 270,798 £ 377,749 -28% Operating expenses 211,581 272,901 -22% Operating profit 59,217 104,848 -44% Operating margin 21.9% 27.8% -21% EBITDA 77,820 127,414 -39% EPS - diluted 4.2p 8.2p -49% EBITDA per share - diluted 9.
Slide 8: Segmental Analysis
Segmental Analysis in thousands Three Months Ended March 31, 2003 Revenues Expenses Profit AIM US £95,368 £(57,987) £37,381 Canada 33,417 (17,752) 15,665 128,785 (75,739) 53,046 INVESCO US 63,408 (51,015) 12,393 UK 40,742 (39,513) 1,229 Europe/Asia 17,541 (18,986) (1,445) 121,691 (109,514) 12,177 Pr
Slide 9: Operating Profit – 2002 Q4 V. 2003 Q1
Operating Profit – 2002 Q4 V. 2003 Q1 in thousands Q1 Q4 2003 2002 Change AIM US £37,381 £41,710 £(4,329) Canada 15,665 17,538 (1,873) 53,046 59,248 (6,202) INVESCO US 12,393 15,486 (3,093) UK 1,229 4,674 (3,445) Europe/Asia (1,445) (607) (838) 12,177 19,553 (7,376) Private Wealth/Retirement (683) (
Slide 10: Funds Under Management
Funds Under Management in billions AIM INVESCO PWM/ Total US Canada US UK Europe/Asia Retirement December 31, 2002 $332.6 $124.4 $22.0 $123.2 $34.0 $21.1 $7.9 Market gains/(loss) (7.2) (1.8) (1.6) (1.2) (1.7) (0.7) (0.2) Net new (lost) business (2.6) (1.2) 0.1 0.1 (1.0) (0.4) (0.2) Change in money -
Slide 11: Balance Sheet
Balance Sheet in thousands March 31, 2003 Dec 31, 2002 Fixed assets Goodwill £2,515,959 £2,542,306 Investments 249,487 248,408 Tangible assets 191,765 197,060 2,957,211 2,987,774 Currents assets Debtors 887,699 725,547 Investments 70,579 69,195 Cash 391,768 355,111 1,350,046 1,149,853 Current liabil
Slide 12: Group Cash Flow
Group Cash Flow in thousands Three Months Ended March 31, 2003 2002 Operating profit £21,871 £68,011 Amortization and depreciation 54,461 52,750 Change in debtors, creditors and other (46,753) (17,430) Net cash inflow from operating activities 29,579 103,331 Interest (paid)/received, net of investme
Slide 13: Analysis Of Net Debt
Analysis Of Net Debt in thousands March 31, 2003 December 31, 2002 (Decrease)/Increase £ $ £ $ £ $ Senior notes ($250m) 158,228 250,000 155,280 250,000 2,948 - Senior notes ($700m) 443,038 700,000 434,783 700,000 8,255 - Senior notes ($350m) 221,519 350,000 - - 221,519 350,000 Credit facility - - 14
Slide 14: Average Shares Outstanding
Average Shares Outstanding in thousands March 31, 2003 Dec 31, 2002 Ordinary shares 769,678 771,692 Exchangeable shares 34,899 38,350 Shares outstanding 804,577 810,042 Shares reserved for: Long-term incentive plan 2,633 - Options 1,789 9,476 Total shares 808,999 819,518 14
Slide 15: Headcount
Headcount March 31, Dec 31, 2003 2002 Change AIM US 2,150 2,246 (96) Canada 917 918 (1) 3,067 3,164 (97) INVESCO US 1,417 1,428 (11) UK 1,365 1,428 (63) Europe/Asia 644 714 (70) 3,426 3,570 (144) Private Wealth/Retirement 765 770 (5) Corporate 62 77 (15) 7,320 7,581 (261) 15
Slide 16: US GAAP Reconciliation (Profit)
US GAAP Reconciliation (Profit) in thousands Three Months Ended March 31, 2003 2002 Net profit under UK GAAP £ (3,690) £ 30,803 US GAAP adjustments: Acquisition accounting 34,672 33,992 Redundancy and reorganizations (1,328) -- Taxation 1,888 (3,815) Other (1,538) 544 Net income under US GAAP £ 30,0
Slide 17: US GAAP Reconciliation (Equity)
US GAAP Reconciliation (Equity) in thousands March 31, 2003 Dec 31, 2002 Shareholders' funds under UK GAAP £ 2,273,404 £ 2,283,488 US GAAP adjustments: Acquisition accounting 1,081,988 1,034,168 Redundancy and reorganizations 10,633 11,961 Treasury stock (168,755) (162,104) Dividends - 52,656 Other
Slide 18: Restatement of 2002 Quarterly Results for Business Realignment
AMVESCAP Restatement of 2002 Quarterly Results for Business Realignment
Slide 19: Q1 2002
Q1 2002 in thousands Revenues Expenses Op. Profit FUM* Headcount** AIM US 142,047 (80,777) 61,270 $158.2 2,526 Canada 39,008 (20,752) 18,256 23.8 925 181,055 (101,529) 79,526 182.0 3,451 INVESCO US 97,369 (70,727) 26,642 146.7 1,641 UK 53,052 (42,494) 10,558 39.1 1,495 Europe/Asia 22,347 (21,472) 87
Slide 20: Q2 2002
Q2 2002 in thousands Revenues Expenses Op. Profit FUM* Headcount** AIM US 134,809 (77,693) 57,116 $135.4 2,532 Canada 43,209 (19,306) 23,903 23.3 916 178,018 (96,999) 81,019 158.7 3,448 INVESCO US 88,962 (66,844) 22,118 135.5 1,492 UK 55,798 (44,453) 11,345 37.8 1,522 Europe/Asia 21,406 (21,334) 72
Slide 21: Q3 2002
Q3 2002 in thousands Revenues Expenses Op. Profit FUM* Headcount** AIM US 109,501 (62,991) 46,510 $117.6 2,459 Canada 34,909 (16,963) 17,946 20.8 903 144,410 (79,954) 64,456 138.4 3,362 INVESCO US 75,258 (50,661) 24,597 122.6 1,479 UK 45,063 (40,577) 4,486 33.4 1,488 Europe/Asia 21,096 (20,552) 544
Slide 22: Q4 2002
Q4 2002 in thousands Revenues Expenses Op. Profit FUM* Headcount** AIM US 101,599 (59,889) 41,710 $124.4 2,246 Canada 34,219 (16,681) 17,538 22.0 918 135,818 (76,570) 59,248 146.4 3,164 INVESCO US 71,868 (56,382) 15,486 123.2 1,428 UK 42,705 (38,031) 4,674 34.0 1,428 Europe/Asia 20,779 (21,386) (607
Slide 23: 2003 First Quarter Results
AMVESCAP 2003 First Quarter Results