2004 First Half Results

Transcription

1 2004 First Half Results 2004 First Half Results 0

2 Highlights Overview Competitive position Financial Review and Summary Outlook 2004 First Half Results 1

3 Differing from the market 1H04 Growth in Fund Sector (net inflows) Number of Promotori Shareholders AZIMUT +625 mln (relative only to mutual funds) % 23,35% tied-up into a strong Shareholders Agreement among Promotori, Management and Employees Sector -4,744 mln (Assogestioni) -2.77% Lost on avg. by the first 20 major competitors (Assoreti) All the competitors are affiliated to large groups 2004 First Half Results 2

4 Differing from the market 1H04 Active Management Style Fund Pricing AZIMUT Total Equity underlying assets is 52% Fund Performance vs Risk Free Pricing Model never changed since 1993 consistent with our Active Management Style Change of the pricing of management fees only after the issue, if any, of new rules by Bank Italy Sector Total Equity underlying assets is 24% The major competitors have been changing their fund pricing 2004 First Half Results 3

5 Relevant growth of net inflows of Net Managed Asset (+ 65.4% vs 1H03) and AuM (+11.3% vs ) Steady monthly net inflows in uncertain markets Launch of AZ LIFE (May 2004) Growth of Promotori Finanziari (+11.3%) and clients (+4.7%) Increase in revenues (+13.5%) Highlights 2004 First Half Results 4

6 Financial Highlights 1H 04 1H 03 % 2003 AuM (Euro m) 7,790 6, % 7,001 Net Inflows (Euro m) (1) % 718 Market Share (2) 1.45% 1.22% 18.8% 1.31% Revenues (3) (Euro m) % Operating Profit (Euro m) % 55.5 Operating Cash Flow (Euro m) % 53.2 Promotori finanziari % 780 Clients 106K 99K 7.1% 101K (1) Relative to Net Managed Asset (2) Source: Assogestioni. Market share relative only to mutual funds (3) Commission income plus other income Continuing with the positive track record of operating results and growth despite the market uncertainty in 1H First Half Results 5

7 Growth for all main figures + 65% + 11% ,001 7,790 1H 03 1H0 4 NET INFLOWS AUM H % + 5% K 106K PROMOTORI H H 04 CUSTOMERS Data mln Growth generated by both existing and new clients 2004 First Half Results 6

8 Net Inflows Data mln Net Inflows Net Inflows CHANGE VS 1H 03 Net Inflows 1H04 1H03 ABSOLUTE % 2003 Azimut Funds AZ Funds Funds of funds n.a. 196 Individual managed portfolios Pension funds n.a. 3 AZ Life n.a. 0 Investing in Group s funds Total net managed assets Assets held in Custody TOTAL NET INFLOWS Source: Company Data Strong growth of net inflows in managed assets (+65.4%) 2004 First Half Results 7

9 Assets under management Data mln AUM AUM CHANGE VS 31/12/03 AUM 30/06/ /06/2003 ABSOLUTE % 31/12/2003 Azimut Funds 6,861 5, ,188 AZ Funds Funds of funds Individual managed portfolios 670 1, Pension funds AZ Life n.a. - Investing in Group s funds Assets under management 7,790 6, ,001 Assets held in custody TOTAL ASSETS 8,113 6, ,189 Source: Company Data Significant growth of AUM (+11.3%), esp. for AZ Funds (+25.2%) vs First Half Results 8

10 Funds Net Inflows: Azimut vs. the market 2,50% 3,00% 2,00% 1,50% 1,00% 0,50% 2,50% 2,00% 1,50% 1,00% 0,50% 0,00% -0,50% -1,00% -1,50% -2,00% -2,50% 1H 01 2H 01 1H 02 2H 02 1H 03 2H 03 1H 04 0,00% -0,50% -1,00% -1,50% -2,00% -2,50% -3,00% Source:Assogestioni Fund Industry Azimut Outperforming the sector in 1H04 (6 months Positive Azimut Inflows vs. 2 of the industry) 2004 First Half Results 9

11 Net Inflows 2003( m) Funds Breakdown by Category Net Inflows (Euro m) Net Inflows 1H 04( m) 18, , , , , , , , , , , , , ,527.3 Azimut Monetary -2, , Azimut , ,127.3 Bond Balanced Flexible -7, , Italian Funds Industry -5, ,086.8 Italian Funds Industry Equity Source: Company / Assogestioni Balanced and Flexible funds confirm their value in the asset allocation 2004 First Half Results 10

12 Funds Breakdown by Category AuM (%) AuM (%) 100% 100% 90% 22% 27% 90% 23% 26% 80% 70% 3% 7% 80% 70% 4% 7% 60% 50% 40% 46% 28% 20% 60% 50% 40% 45% 27% 22% Monetary Bond Balanced 30% 30% Flexible 20% 10% 21% 20% 20% 10% 20% 19% Equity 0% Italian Funds Industry Azimut 6% 0% Italian Funds Industry Azimut 6% Source: Company / Assogestioni Equity underlying the funds is greater than 50% 2004 First Half Results 11

13 Funds performance Number of Azimut Funds in Top Quartiles as % of Total % 1 st and 2 nd quartile 1H 04 1 Year 5 Years Equity & Balanced (1) 68.75% 63.16% 84.21% Bonds 42.86% 50.00% 70.00% % 1st quartile 1H 04 1 Year 5 Years Equity & Balanced (1) 43.75% 42.11% 63.16% Note: Data as of 30 June Past performances are not indicative of future returns Source: Money Mate and Azimut (1) Includes Formula 1 Anno Mantaining the performance 2004 First Half Results 12

14 Launch of AZ LIFE In May Azimut Promotori began the placement of AZ LIFE first Unit Linked single premium: Cassiopea AZ FUND Management started two new funds dedicated to Cassiopea and managed with a long term horizon - AZ FUND Long Term Bond - AZ FUND Long Term Equity Margin expansion as existing and new customers switch to life insurance Source: Company Data 2004 First Half Results 13

15 AZ LIFE: delivering results In less than two months Cassiopea gathered a portfolio of 37 Mln deriving both from new investments (16%) and switches from other products (84%) 86% of Cassiopea assets are invested in long and medium term profiles In August AZ LIFE technical reserves were 57 mln Source: Company Data 2004 First Half Results 14

16 Credit Suisse , ,00 Top level ranking amongst networks AuM/ Promotori ( 000) as at ,00 Fideuram , ,00 Euromobiliare Finanza & Futuro BNL Investimenti 6.000, , ,00 SPInvest Generali Rasbank Mediolanum Sella Bipielle Fineco Network Axa Credem Xelion BPU Mediosim Banca ,00-100, ,00 200,00 300,00 400,00 500,00 600,00 700,00 800,00 Source: Company derived from Assoreti Data sample of the first 19 Network by AUM 1H04 net inflows/ Promotori ( 000) Improving the productivity of the Promotori 2004 First Half Results 15

17 CREDIT SUISSE (ITALY) B. FIDEURAM AZIMUT B. EUROMOB. S. PAOLO INV. FIN. & FUTURO B. GENERALI BNL INVEST MEDIOLANUM RASBANK XELION B. SELLA SIM MEDIOSIM B. DELLA RETE BPL NETWORK AXA SIM B. FINECO BPU SIM CREDEM B. 121 SIMGENIA SIM Mln di 16,00 14,00 14,50 Network effectiveness: Aum per pf 12,00 11,53 10,00 8,00 9,09 7,66 6,52 Average AuM of the sample per PF 4.66 mln as at valore medio pro capite 4,66 mln 6,00 5,69 4,69 4,58 3,94 3,85 3,80 4,00 3,27 2,00 2,36 2,29 2,23 2,00 1,97 1,52 0,93 0,31 - Source: Company derived from Assoreti Data sample of the first 20 Network by AUM Confirming the positioning vs. competitors 2004 First Half Results 16

18 BNL INVEST AZIMUT MEDIOSIM B. DELLA RETE BPU SIM XELION B. SELLA SIM AXA SIM CREDEM MEDIOLANUM BPL NETWORK B. GENERALI B. EUROMOB. B. FINECO B. FIDEURAM S. PAOLO INV. RASBANK SIMGENIA SIM FIN. & FUT. B. 121 CREDIT SUISSE (ITALY) Euro ,00 Network effectiveness: net inflows per Pf 710,39 660,00 560,00 460,00 466,07 443,46 360,00 329,17 318,25 260,00 160,00 260,08 195,91 189,85 151,06 118,36 111,48 60,00 87,56 45,53 42,81 37,68 33,72-18,56-69,75-116,45-124,30-40,00-140,00 Source: Company derived from Assoreti Data sample of the first 20 Network by AUM Outstanding Net Inflows per Promotore in the 1H First Half Results 17

19 Consolidated Reclassified Income Statement Euro/000 30/06/ /06/ /12/2003 Entry Commission Income Fixed management fees Variable management fees Other income Total Revenues Distribution Costs Commissions on No load products Personnel and SG&A Depreciation, amortisation/provisions Operating Costs Operating Profit Growth of operating profit (+10.7%) vs 1H First Half Results 18

20 Management Fees Trend Fixed Management Fees (Euro m) Variable Management Fees (Euro m) Average per year: Euro 87m Average per year: Euro 50m H '03 1H ' H '03 1H '04 Growth in fixed mngt fees (+14%) as a result of increased AUM compensates the decline of variable fees due to underperforming markets in 2Q First Half Results 19

21 High Operating Leverage / Lean Fixed Cost Base Revenue Trend (Euro m) Lean Costs (Euro m) , ,5 90, ,7 5, ,4 7,2 8,0 66, , ,7 42,2 47,9 54,5 61,7 23,5 33,2 41,1 13,4 12, H'03 1H' H'03 1H'04 Fixed Management Fees Other (1) Variable Management Fees Personnel and G&A Distribution Costs No Load Amortisation (1) Entry Fees + Other Income Improving the operating profit excluded variable mngt fees 2004 First Half Results 20

22 Consolidated Reclassified Income Statement 30/06/ /06/ /12/2003 Operating Profit Interest income Goodwill/Trade Mark Amortization Non recurring costs Interest expenses Profit (loss) before tax Income tax Profit (loss) after tax Net Profit ex. Non recurrent costs Profit (loss) after tax Non recurrent costs Goodwill/Trade Mark Amortization Extraord. Gain from financial operations Effect on taxation: Non recurrent costs Extraord. Gain from financial operations Write-downs of advance taxation Adjusted Net Profit First Half Results 21

23 Adjusted gross and net profit 30/06/ /06/ /12/2003 Adjusted Pre-Tax Profit ,530 Taxation Adjusted Net Profit Adjusted net equity Share capital Share premium Adjusted profit (previous year) Adjusted Net Profit Total First Half Results 22

24 Consolidated cash flow statement Net income (loss) (9.215) (16.197) (22.214) Amortisation, Depreciation and other provisions Interest expense No load commissions expense Vat on royalties Tax provisions (tax asset uses) Net change in credit and debt and other funds (447) (10.886) (11.940) Cash flow from operating activities Increase/(decrease) in other asset (5.654) (315) (811) Increase in investment subsidiaries (600) (750) (4.250) Increase/(decrease) in securities portfolio (2.250) Cash flow from investment activities (8.504) Reserve Account Senior Loan repayment (34.885) (5.615) Interest on Senior Loan (1.235) (2.603) (4.432) Mezzanine Loan repayment (4.000) (15.000) (52.200) Interest on Mezzanine Loan (112) (4.560) (7.036) Bipop current account (433) 0 0 Cash flow from financial activities (40.664) (25.330) (47.056) TOTAL CASH FLOW GENERATED (ABSORBED) (22.459) Cash at bank and on hand at beginning of period Cash at bank and on hand at the end of period MLN DEBT REPAYMENT SINCE BUY OUT PLUS INTEREST ON SENIOR AND MEZZANINE DEBT 2004 First Half Results 23

25 Net consolidated financial position Pre-listing balances Post-listing balances Due to banks: ( ) ( ) Senior Loan (65.038) ( ) Vendor Loan ( ) 0 Amounts due from financial institutions ( ) 0 Shareholder Loan ( ) 0 Mezzanine Loan (1.033) 0 Bond debt (25.000) Convertible Bond debt (95.900) Total borrowings debt ( ) ( ) Cash and securities Net Funding ( ) ( ) Data as at 7th July First Half Results 24

26 Net shareholders equity pre- and post-listing excl. result for the period Pre-listing Post-listing Share capital 22,000 31,744 Share premium reserve 28, ,866 Legal reserve Other reserves (719) (719) Net losses carried forward (45,908) (45,908) TOTAL 4, ,702 Data as at 7th July First Half Results 25

27 Outlook two months after the IPO (one of those was holidays) we confirm our IPO growth strategy 2004 First Half Results 26

28 Growth Potential from Existing and New Operations Organic Growth Development of Third Party Distribution Recruitment of new promotori, leveraging on proven capability to attract top-class professionals Increase in productivity of existing promotori Widening product range Access new customer base Banks working in partnership with Azimut can widen product range and rely on a high quality management, assistance and commercial support from Azimut Development of Other Channels Target Institutional and Private clients through direct channel Azimut perceived independence and high quality of money management as key selling points Focus on client requirements and relationship through dedicated resources Life Insurance Growth from (i) attractive life insurance sector prospects in Italy and (ii) limited exposure to insurance of Azimut vs. peers (only 1.6% of AUM), allowing for cross-selling Margin expansion due to life insurance wrap Tax benefit from Ireland based operations/luxembourg based funds Banking Products Limited contribution to revenue generation, but key component to complement product range Limited investments required 2004 First Half Results 27

29 and keep on growing (update August 2004) Data in mln EURO Net Inflows Net Inflows Total AuM % Change in August Yto end of August Yto end of August since BoY Azimut Funds (*) , % Funds of funds % AZ Funds (*) % Discretionary Accounts % AZ Life (Unit Linked) % Total net managed assets Total net managed assets net of duplication , % , % Assets held in custody % TOTAL NET INFLOWS & AuM , % Not slowing down during the holidays period 2004 First Half Results 28

30 Variable Management Fees The growth of AUM affects the Fixed Management Fees, while the market conditions affect the Variable Management Fees 1H ,8 mln Euro ,9 mln Euro 1H ,4 mln Euro 2004? 2004 First Half Results 29

31 Backup 2004 First Half Results 30

32 Azimut Network effectiveness: net inflows Data in Euro/000 Net inflows Managed assets 1H04 Avg. Number of PF (dec. 03-jun 04) Net inflows Managed assets per PF B. Mediolanum 769, , Xelion B. 726, , Azimut 585, B. Generali 288, , Mediosim B. della Rete 196, Bpu Sim 189, B. Fideuram 150, , B. Fineco 140, , Sella Sim 131, Credem 124, Rasbank 123, , Axa Sim 102, Bipielle Network 101, Simgenia Sim 90, , B. Euromobiliare 52, Sanpaolo Invest Sim 47, , Banca , Credit Suisse (Italy) -39, Finanza & Futuro -85, , Bnl Investimenti -105, H04 net inflows of Companies that distribute through Promotori Finanzari. The sample is formed by the 20 largest companies by Aum. The data include Mutual Fund, Individual Managed Portfolios, Life insurance and Pension Funds distributed through Promotori Finanzari. Assoreti, the source of data, is the association of network-driven Industry. Source: Company derived fromassoretidata 2004 First Half Results 31

33 Azimut Network effectiveness: AuM Data in Euro/000 AuM N. of PF (avg Jan-Jun 04) AuM per PF Credit Suisse (Italy) 4,617, , B. Fideuram 38,226, , , Azimut 7,493, , B. Euromobiliare 3,577, , Sanpaolo Invest Sim 7,234, , , Finanza & Futuro 6,938, , , B. Generali 11,415, , , Bnl Investimenti 4,136, , B. Mediolanum 15,972, , , Rasbank 12,654, , , Xelion B. 8,402, , , Sella Sim 1,350, , MediosimB. della Rete 997, , Bipielle Network 1,539, , Axa Sim 881, , B. Fineco 3,230, , , Bpu Sim 846, ,977,95 Credem 961, , Banca , Simgenia Sim 838, , ,238, , , Managed assets includes Mutual Funds, Individual Managed Portfolios, Life insurance and Pension Funds distributed through Promotori Finanzari Source: Company derived fromassoretidata 2004 First Half Results 32

34 Higher gearing towards Equity Markets Mutual Funds Breakdown by Underlying Assets: Sector Mutual Funds Breakdown by Underlying Assets: Azimut Total Equity 24% Italian equities 5% Government Bonds 56% Total Equity 52% Italian equities 13% Government bonds 43% Foreign equities 19% Other 7% Italianbonds 3% Foreign bonds 10% Foreign equities 39% Other 5% Italianbonds 0% Foreign bonds 0% Source: Company / Assogestioni data as at the end of June 2004 First Half Results 33

35 Stock performance Source: Money Mate 2004 First Half Results 34

36 Fabrizio Armone Investor relations manager tel Lidia Lommi Marketing and PR manager tel Contacts Azimut Holding SpA Piazza Durante Milano 2004 First Half Results 35

37 Disclaimer This document has been issued by Azimut Holding just for information purposes. No reliance may be placed for any purposes whatsoever on the information contained in this document, or on its completeness, accuracy or fairness. Although care has been taken to ensure that the facts stated in this presentation are accurate, and that the opinions expressed are fair and reasonable, the contents of this presentation have not been verified by independent auditors, third parties and the Company. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company, or any of their respective members, directors, officers or employees or any other person. None of the Company and its subsidiaries, or any of their respective members, directors, officers or employees nor any other person acting on behalf of the Company accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. The information in this document might include forward-looking statements which are based on current expectations and projections about future events. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company and its subsidiaries and investments, including, among other things, the development of its business, trends in its operating industry, and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur. No one undertakes to publicly update or revise any such forward-looking statement. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. Any forward-looking information contained herein has been prepared on the basis of a number of assumptions which may prove to be incorrect and, accordingly, actual results may vary. This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The information herein may not be reproduced or published in whole or in part, for any purpose, or distributed to any other party. By accepting this document you agree to be bound by the foregoing limitations First Half Results 36