Abrdn European Logistics Income PLC · LSE:ASLI
Abrdn European Logistics Income — Aberdeen Asset Management — FY2011 Earnings Presentation
41 slides from Abrdn European Logistics Income's earnings presentation, Dec 5, 2011
Slide 1: Annual Results to 30 September 2011
Aberdeen Asset Management PLC Annual Results to 30 September 2011 5 December 2011 Martin Gilbert, Chief Executive Bill Rattray, Finance Director
Slide 2: Financial highlights
Financial highlights • Revenue £784.0 million (+23%) • Clean pre-tax profit £301.9 million (+44%) • Clean earnings per share 18.7p (+41%) • Operating margin 39.5% (2010: 34.8%) • Core operating cashflow £399.3 million (+57%) • £98.1 million used to purchase shares for deferred bonus scheme • Final d
Slide 3: Reconciliation of AuM by asset class
Reconciliation of AuM by asset class Alternative Fixed investment Money Equities income strategies Property market Total £bn £bn £bn £bn £bn £bn AuM at 30 Sep 2010 72.1 45.1 29.1 21.7 10.7 178.7 Net new business flows 9.0 (4.8) (3.2) (0.6) (2.1) (1.7) Markets and performance (6.5) (0.7) (1.2) (0.4)
Slide 4: A diversified asset and client base
A diversified asset and client base By asset class Assets by client domicile 30 Sep 11 £bn 30 Sep 11 £bn Equities 75.1 Europe ex UK 54.1 Fixed income 40.0 UK 50.0 Alternative investment strategies 24.8 Americas 29.1 Property 20.5 Asia Pacific 20.7 Money market 9.5 Middle East & Africa 16.0 Total 169
Slide 5: Net new business overview: 2008 - 2011
Net new business overview: 2008 - 2011 Net sales by asset class, £bn • Equities – continued strong inflows to global emerging markets and global equities • Fixed income – growing momentum in emerging market and Asian debt • Property – continued interest in European and Asian expertise, now supplemen
Slide 6: New business by product type
New business by product type Gross flows Gross flows 2009 2010 2011 Pooled funds 5.9 17.4 25.0 Segregated mandates 13.2 29.2 18.0 19.1 46.6 43.0 Net flows Net flows 2009 2010 2011 Pooled funds 0.5 6.4 5.7 Segregated mandates (11.2) (3.8) (7.4) (10.7) 2.6 (1.7) 5
Slide 7: New business by region: 2008 - 2011
New business by region: 2008 - 2011 Gross sales FY11 – £43.0bn • In Continental Europe we capitalised on the enveloping Euro crisis, raising almost US$800 million since March in a short duration Asian fixed income fund • In Canada, Aberdeen became the fastest growing Money Manager of pension assets
Slide 8: Equity performance
Equity performance To 31 Oct 11 1 year 3 years 5 years 10 years Aberdeen Benchmark Aberdeen Benchmark Aberdeen Benchmark Aberdeen Benchmark % pa % pa % pa % pa % pa % pa % pa % pa Asia Pacific ex Japan Equity1 -2.57 -4.79 26.56 24.47 13.80 10.41 18.45 14.11 Emerging Markets Equity2 -2.78 -8.32 30.59
Slide 9: Fixed income performance
Fixed income performance To 31 Oct 11 1 year 2 year 3 years 5 years 10 years Benchmar Aberdeen Benchmark Aberdeen Benchmark Aberdeen Benchmark Aberdeen Aberdeen Benchmark k % pa % pa % pa % pa % pa % pa % pa % pa % pa % pa 1 Global Government 2.70 3.73 4.83 5.03 9.38 8.65 7.88 7.45 7.81 7.41 2 Globa
Slide 10: Funds of hedge funds
Funds of hedge funds To 31 Oct 11 Aberdeen Orbita Since inception 1 year 3 Years 5 Years (annualised) Fund Comparative Fund Comparative Fund Comparative Fund Comparative Launch %pa index %pa %pa index %pa %pa index %pa %pa index %pa date Capital Return US$ 1 3.78 -1.10 10.61 1.80 4.38 -0.12 6.19 3.7
Slide 11: Performance of direct property pooled vehicles
Performance of direct property pooled vehicles Composite performance against the market Total return Aberdeen INREV Index Relative performance 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% 2004 2005 2006 2007 2008 2009 2010 3 yr ann 5 yr ann 7 yr ann Aberdeen: Weighted composite perfor
Slide 12: Focus on increased regional distribution
Focus on increased regional distribution • A number of new product launches into UK and European wholesale markets to tap into demand for global product and yield • Build UK pooled fund presence to be a top 10 player • Grow US distribution presence • Alternative investment strategies - introducing c
Slide 13: Financial results
Financial results A Aberdeen
Slide 14: Summary
Summary Year to 30 Sep 11 2010 2011 Revenue £638.2m £784.0m +23% Clean pre-tax profit £210.0m £301.9m +44% Core operating cashflow £254.6m £399.3m +57% Blended management fee rate 37.4bp 41.2bp Operating margin 34.8% 39.5% Clean earnings per share 13.3p 18.7p +41% Total dividend for the year 7.0p 9.
Slide 15: Profit before tax
Profit before tax 400 +142 +6 -2.5 -58 350 302 300 +4.5 250 210 200 150 100 50 0 PBT 2010 Management fees Performance fees Transaction fees Operating costs Finance costs PBT 2011 14
Slide 16: Revenues, costs and operating profit
Revenues, costs and operating profit 2010 2011 Change Revenue £m £m % Operating costs Operating profit 900 Revenue 638.2 784.0 +23% 800 Operating costs (416.3) (474.7) +14% 700 Operating profit 221.9 309.3 +39% 600 500 400 300 200 100 0 2008 2009 2010 2011 15
Slide 17: Income statement progression
Income statement progression FY FY 1H 11 2H 11 2011 2010 £m Margin £m Margin Margin Margin £m £m Revenue 385.9 398.1 784.0 638.2 Staff costs (134.8) 35.0% (138.9) 34.9% (273.7) 34.9% (228.8) 35.8% Other costs (103.9) 26.9% (97.1) 24.4% (201.0) 25.6% (187.5) 29.4% Total operating costs (238.7) 61.9%
Slide 18: Revenues, costs and margin
Revenues, costs and margin £m 17
Slide 19: Revenue
Revenue Management fees Performance fees Transaction fees 8.5 800 Transaction 36.3 Performance fees 700 fees 1% 5% 11.0 600 30.3 500 25.1 6.9 400 9.3 9.7 739.2 596.9 300 200 Management 395.7 402.4 fees 94% 100 0 2008 2009 2010 2011 18
Slide 20: Performance fees
Performance fees 2010 2011 £m £m Equities 19.4 64% 18.8 52% Fixed income 6.2 20% 5.6 15% Alternative investment strategies 3.2 11% 10.3 28% Property 1.5 5% 1.6 5% Revenue 30.3 100% 36.3 100% Performance fees were stable at around 5% of total revenue 19
Slide 21: Management fee and revenue margins
Management fee and revenue margins Management fees Total revenue 2010 2011 2010 2011 bps bps bps bps Equities 58 61 62 63 Fixed income 22 23 23 25 Alternative investment strategies 17 16 18 20 Property 49 50 55 55 Money market 13 13 13 13 Blended average rate 37.4 41.2 40.1 43.7 20
Slide 22: Operating costs as proportion of revenue
Operating costs as proportion of revenue • Cost growth has been contained and is much lower than revenue growth; cost to income ratio has fallen from 65% in 2010 to 61% • Maintained a steady compensation ratio of 35% (2010 36%) • Main increase in non-staff costs is increase in marketing spend to gro
Slide 23: Analysis of operating expenses
Analysis of operating expenses 1H 2011 2H 2011 2011 2010 £m £m £m £m Staff costs 134.8 138.9 273.7 228.8 Third party admin 26.5 23.1 49.6 51.3 Accommodation 8.9 10.1 19.0 20.8 IT 12.4 11.6 24.0 25.2 Marketing 9.3 12.5 21.8 13.8 Project costs 7.7 3.5 11.2 10.1 Other 39.1 36.3 75.4 66.3 103.9 97.1 201
Slide 24: Operating profit progression
Operating profit progression 2010 2011 £m Margin £m Margin Management fees 596.5 37.4bp 739.2 41.2bp Performance fees 30.3 2.0bp 36.3 2.0bp Transaction fees 11.4 0.7bp 8.5 0.5bp Revenue 638.2 40.1bp 784.0 43.7bp Staff costs 228.8 14.4bp 273.7 15.2bp Other costs 187.5 11.8bp 201.0 11.2bp Total operat
Slide 25: Operating profit
Operating profit • Operating profit: £309.3m (+39%) Operating profit Operating cashflow 450 • Core operating cashflow: £399.3m 400 (+57%) 350 • Cash conversion: 129% of operating 300 profit (2010: 115%) 250 200 150 100 50 0 2008 2009 2010 2011 24
Slide 26: Cashflow
Cashflow 2011 £m Core cash from operations 399.3 Short term settlement differences, interest, tax and non-recurring costs (32.9) Net cashflow from operating activities 366.4 Net purchases (net sales) of investments (15.2) Purchase of fixed assets (8.3) Preference dividends and coupons on capital sec
Slide 27: Cash and borrowings
Cash and borrowings Net cash of £127.5 million Sep Sep 2010 2011 Gross debt Cash Net cash (net debt) £m £m 300 Cash and cash equivalents 150.8 209.5 7.2% Subordinated notes 2016 78.8 - 200 3.5% Convertible bonds 2014 79.7 82.0 Total borrowings 158.5 82.0 Net cash (net debt) (7.7) 127.5 100 Sharehold
Slide 28: Summary balance sheet
Summary balance sheet Sep 2009 Sep 2010 Sep 2011 £m £m £m Net tangible assets (13.8) 112.7 218.9 Goodwill & intangibles (net of deferred tax) 1,035.8 1,072.2 1,015.6 Total net assets 1,022.0 1,184.9 1,234.5 Shareholders’ funds 817.0 973.2 1,020.2 Minority interests 6.9 13.6 16.2 Perpetual capital se
Slide 29: A strong financial position
A strong financial position • Healthy balance sheet • Strong cashflow • Conservative investment approach • Trend likely to continue towards higher margin product mix • Global distribution capability and broad product range • Progressive dividend Continued commitment to generating sustainable growth
Slide 30: Appendix
Appendix • AuM – by client type and domicile • AuM analysis – Equity, fixed income, alternatives and property • AuM by domicile and global office network • New business analysis – Equity, fixed income and alternatives • Performance - funds of hedge funds • Share count for EPS calculations
Slide 31: Well spread by client type and client domicile
Well spread by client type and client domicile Assets by client type Assets by client domicile Property funds Closed end 7% Asia Pacific funds 12% 5% Open end funds 25% Middle East & United Kingdom Africa 30% 9% Americas 17% Institutional mandate Europe ex UK 63% 32% 30 Sep 11 £bn 30 Sep 11 £bn Inst
Slide 32: Equity and fixed income analysis
Equity and fixed income analysis Equities Fixed Income Currency Overlay 1% US Europe High Yield UK 2% 2% 2% European Convertibles 4% 8% 1% UK Asia Pacific 22% 9% Global Emerging 27% markets 34% EMD 10% Australia 19% US Asia Pacific 13% Global 31% 15% 30 Sep 11 £bn 30 Sep 11 £bn UK 8.9 Emerging Marke
Slide 33: Alternatives and property AuM
Alternatives and property AuM Alternative investment strategies Property Funds of private equity Asia indirect 4% 3% UK indirect Funds of Global direct hedge funds Long only 1% 12% 14% fund of funds 29% Continental/ Nordic Eastern Europe direct indirect 37% 6% Continental/ Eastern Europe Indexed dir
Slide 34: International reach: offices across the world
International reach: 30 offices across the world Sales & Distribution Head Office Sales & Distribution AuM by domicile Philadelphia Aberdeen Bangkok Toronto Hong Kong Sales & Distribution Singapore Investment centre Amsterdam Budapest Shanghai Philadelphia Edinburgh Frankfurt Sydney Geneva Helsinki
Slide 35: New business – 2011 and 2010
New business – 2011 and 2010 Gross Outflows Net flows inflows £bn £bn £bn 2011 Equities 24.1 15.1 9.0 Fixed income 8.7 13.5 (4.8) Alternative investment strategies 3.9 7.1 (3.2) Property 1.2 1.8 (0.6) Money market 5.1 7.2 (2.1) 43.0 44.7 (1.7) 2010 Equities 23.0 9.2 13.8 Fixed income 8.6 19.5 (10.9)
Slide 36: Quarterly new business flows
Quarterly new business flows Q1 Q2 Q3 Q4 FY11 £m £m £m £m £m Gross inflows Equities 7,445 6,244 5,656 4,783 24,128 Fixed income 2,315 2,286 1,969 2,084 8,654 Alternative investment strategies 1,108 970 903 881 3,862 Property 43 74 913 204 1,234 Money market 1,337 1,147 1,449 1,176 5,109 12,248 10,72
Slide 37: New business – equities
New business – equities Q1 Q2 Q3 Q4 FY 11 £m £m £m £m £m Gross inflows Asia Pacific 2,056 1,630 1,365 1,302 6,353 Global emerging markets 4,007 2,879 2,311 2,226 11,423 Europe 15 18 5 5 43 Global & EAFE 1,211 1,558 1,666 1,108 5,543 UK 15 23 18 20 76 US 141 136 291 122 690 7,445 6,244 5,656 4,783 24
Slide 38: New business – fixed income
New business – fixed income Gross inflows Q1 Q2 Q3 Q4 FY11 £m £m £m £m £m Asia Pacific 209 480 146 376 1,211 Australia 869 741 505 590 2,705 Convertibles 120 173 64 10 367 Currency overlay 77 32 20 26 155 Emerging markets 263 228 491 648 1,630 Europe 195 92 150 78 515 Global 71 32 76 90 269 High yie
Slide 39: New business – alternative investment strategies
New business – alternative investment strategies Q1 Q2 Q3 Q4 FY 11 £m £m £m £m £m Gross inflows Indexed equities 14 1 1 1 17 Multi asset 421 511 139 381 1,452 Long only multi manager 550 409 695 483 2,137 Funds of hedge funds 121 48 68 - 237 Funds of private equity 2 1 - 16 19 1,108 970 903 881 3,86
Slide 40: Funds of hedge funds
Funds of hedge funds To 31 Oct 11 Aberdeen Novus Since inception 1 year 3 Years 5 Years (annualised) Fund Comparative Fund Comparative Fund Comparative Fund Comparative Launch %pa index %pa %pa index %pa %pa index %pa %pa index %pa date Natural Resources US$ 1 -4.05 1.58 3.00 4.37 n/a n/a 1.80 -1.92
Slide 41: Share count for EPS calculations
Share count for EPS calculations Actual Projected For basic EPS calculation 2011 2012 2013 2014 Weighted average shares in issue 1,144.5 1,144.5 1,144.5 1,144.5 Less: shares held by EBT (treasury shares) (16.1) (10.0) - - Shares for basic EPS calculation 1,128.4 1,134.5 1,144.5 1,144.5 For diluted E
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