Invesco Ltd · NYSE:IVZ
Invesco — Amvescap — FY2001 Earnings Presentation
19 slides from Invesco's earnings presentation, Feb 5, 2002
Slide 1: 2001 Year End Results
AMVESCAP Helping people worldwide build their financial security 2001 Year End Results Charles W. Brady, Executive Chairman Robert F. McCullough, Chief Financial Officer February 5, 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
Slide 3: Year In Review
Year In Review ¢ Year of major market declines. ¢ Expense control results in satisfactory level of operating profits. ¢ Acquisitions expand geographic position and product strength. ¢ Launched Private Wealth Management business. ¢ Financial summary: „ Revenues at £1.6bn, same as prior year. „ Dilute
Slide 4: Year In Review
Year In Review ¢ Managed Products held good margins in period of declining revenue. MMF assets increased to $65bn. ¢ INVESCO Institutional reflects turnaround – strong gross/net sales with expanded product range. ¢ Global expansion continues with entry into Taiwan, China and significant new distribu
Slide 5: Financial Review
AMVESCAP Financial Review
Slide 6: Summary Profit & Loss Account
Summary Profit & Loss Account in thousands 2001 Ordinary Exceptional Activities items Total 2000 Revenues £ 1,619,847 £ - £1,619,847 £ 1,628,662 Operating expenses (1,096,487) (59,997) (1,156,484) (1,091,555) 523,360 (59,997) 463,363 537,107 Goodwill amortization (137,477) - (137,477) (56,417) Opera
Slide 7: FRS 19 Restatement
FRS 19 Restatement in thousands Taxation FRS 19 Diluted EPS* 2000 Reported Restated Adjustment Reported Restated Quarter 1 £39,888 £37,021 £2,867 12.5p 12.9p Quarter 2 41,892 38,881 3,011 13.1p 13.5p Quarter 3 39,211 35,544 3,667 15.0p 15.5p Quarter 4 36,712 34,059 2,653 12.4p 12.8p Year £157,703 £1
Slide 8: Quarterly Financial Comparisons
Quarterly Financial Comparisons in thousands 2001 2001 Q4 Q3 % change Revenues £ 378,745 £ 387,550 (2%) Operating expenses 272,049 264,466 3% Operating profit 106,696 123,084 (13%) Operating margin 28.2% 31.8% (11%) EBITDA 127,660 140,898 (9%) EPS - diluted 8.2p 9.3p (12%) EBITDA per share - diluted
Slide 9: EPS Comparisons
EPS Comparisons Full Year % 2001 2000 Change Earnings per share (before goodwill and exceptional items): -Basic 41.2p 57.5p (28.3)% -Diluted 40.0p 54.7p (26.9)% -Diluted per ADR at $1.49 $1.19 $1.63 (27.0)% -Diluted per ADR at $1.45 $1.16 $1.59 (27.0)% Earnings per share before goodwill: -Basic 36.3
Slide 10: Segmental Analysis
Segmental Analysis in thousands Year Ended Dec 31, 2001 Revenues Expenses Profit Managed Products £986,234 £(549,763) £436,471 INVESCO Institutional 211,917 (158,365) 53,552 INVESCO Global 340,293 (263,871) 76,422 INVESCO Retirement 58,224 (53,247) 4,977 Private Wealth 21,211 (19,972) 1,239 New Busi
Slide 11: Operating Profit – 2000 V. 2001
Operating Profit – 2000 V. 2001 in thousands 2001 2000 Change Managed Products £ 436,471 £ 512,968 £ (76,497) INVESCO Institutional 53,552 53,606 (54) INVESCO Global 76,422 81,782 (5,360) INVESCO Retirement 4,977 3,957 1,020 Private Wealth Management 1,239 - 1,239 New Business (10,211) (15,422) 5,21
Slide 12: Funds Under Management
Funds Under Management in billions Managed Products INVESCO Total AIM INVESCO Inst Global PWM Dec 31, 2000 $402.6 $193.2 $43.2 $99.6 $66.6 $ -- Market gains/(loss) (49.5) (25.3) (11.5) (3.1) (9.3) (0.3) Acquisitions 32.4 - - 17.7 6.7 8.0 Net new (lost) business 1.8 (0.7) 0.4 2.6 (0.5) - Change in Mo
Slide 13: Funds Under Management - Q4
Funds Under Management - Q4 in billions Managed Products INVESCO Total AIM INVESCO Inst Global PWM September 30, 2001 $ 361.3 $ 161.2 $ 27.6 $ 108.9 $ 56.3 $ 7.3 Market gains/(loss) 28.3 12.2 4.4 5.3 6.1 0.3 Acquisitions - - - - - - Net new (lost) business 2.3 (1.1) (0.3) 2.6 1.0 0.1 Change in MMF 6
Slide 14: Balance Sheet
Balance Sheet in thousands Dec 31, 2001 Dec 31, 2000 Fixed assets Goodwill £2,693,659 £2,373,060 Investments 166,036 147,652 Tangible assets 209,370 201,280 3,069,065 2,721,992 Currents assets Debtors 576,447 717,192 Investments 33,116 65,064 Cash 175,902 327,733 785,465 1,109,989 Creditors (640,804
Slide 15: Group Cash Flow
Group Cash Flow in thousands Year Ended Dec 31, 2001 Dec 31, 2000 Operating profit, excluding banking and insurance activities £ 324,355 £ 463,816 Amortization and depreciation 205,551 108,810 Change in debtors, creditors and other 1,612 (40,139) Net cash inflow from operating activities, excluding
Slide 16: Analysis Of Net Debt
Analysis Of Net Debt in thousands December 31, 2001 December 31, 2000 (Decrease)/Increase £ $ £ $ £ $ Senior notes ($650m) 448,276 650,000 444,201 650,000 4,075 - Senior notes ($300m) 206,897 300,000 - - 206,897 300,000 Equity subordinated debentures 64,733 93,863 67,115 100,001 (2,382) (6,138) Cred
Slide 17: Dividend History
Dividend History 2001 2000 1999 1998 1997 Dividend per share Interim 4.50p 4.00p 3.50p 3.00p 2.50p Final 6.50p 6.00p 5.50p 5.00p 4.50p Total 11.00p 10.00p 9.00p 8.00p 7.00p Dividends (£000) 89,260 75,827 58,244 50,594 39,462 % increase per share 10% 11% 13% 14% 17% dividends 18% 30% 15% 28% 133% % o
Slide 18: Number Of Shares
Number Of Shares in thousands Average Number of Estimated Shares Outstanding Average Shares 2001 2002 Ordinary shares 763,977 776,639 Exchangeable shares 41,084 37,023 Shares outstanding 805,061 813,662 Shares reserved for: Options 24,922 17,069 Total shares 829,983 830,731 18
Slide 19: 2001 Year End Results
AMVESCAP 2001 Year End Results