3q06 results - azimutjsp.azimut.it/export/sites/default/pdf/pdf_presentazioni/11_3q06.pdf · 3q06...
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3Q06 ResultsAzimut Group
13 November 2006
Summary HighlightsAsset management
Distribution
3Q06 Financials
Outlook
3Q06 Highlights
3Q06 Highlights
Italian IndustryAzimut
€ 1276.9m+12.7%
Data in € m
9M06 net inflows into managed assetsFunds under management growth in 2006
€ -14,687.1m+4.58%
Data in €m
Total revenues Net profit EPS (basic) €/cent
+15.4% YOY
0
50
100
150
200
250
300
9M06 9M05 2005
+11.9 YOY
3032343638404244464850
9M06 9M05 2005
+11.6% YOY
2022242628
30323436
9M06 9M05 2005
3Q06 Highlights
New pricing for Italian domiciled funds according to BoI regulation effective since Aug 1st , 2006
2006: an year devoted to product launchesTwo comprehensive investment offers for mutual fundsIn September 2006 the product range of the mutual funds domiciled in Luxemburg (25) has been widened, offering now not only the investment possibilities available through the Italian based funds, but also some new FoF investing in third parties products in asset classes not managed in-house
Two pricing schemes for mutual fundsLuxembourg domiciled funds: no changes, so still monthly booking and cash-in of variable fees charged on the quarterly (rolling) total return of the funds.Italy domiciled funds: Higher fixed fee, annual calculation and booking of variable fees. 2006 is a transition period, so funds will charge following Aug-Dec performance.No accrual has been made in the financial statementsNo accrual has been made in the financial statements, since no certainty of the amount until Dec 31st
2006.
Two new single manager hedge funds launchedAliseodue launched in June 2006 and reached full capacity of 200 clients within a few days.Alisequattro launched in August 2006.Further business development in the single manager sector.
Asset management
0
2000
4000
6000
8000
10000
12000
14000
2001
2002
2003
2004
1Q05
2Q05
3Q05
2005
1Q06
2Q06
AU
G06
3Q06
OC
T06
LUX ITA TOTAL AUM (gross)
Significant growth of LUX-domiciled fundsNew product profile accelerated the trend after August’06
20.4
%
18.0
%
17.8
%
18.0
% 27.5
%
Growth in AZ Life’s AuM
Steady growth of life insurance business1bln € reached
20.4
%
18.0
%
17.8
%
18.0
% 27.5
%
0
100
200
300
400
500
600
700
800
900
1.000
1.100
Jun
Jul
Aug Sep
Oct
Nov
Dec Jan
Feb
Mar
Apr
May Jun
Jul
Aug Sep
Oct
Nov
Dec Jan
Feb
Mar
Apr
May Jun
Jul
Aug Sep
Oct
Source: Company - data in €bln
-12000
-8000
-4000
0
4000
8000
12000
Net inflows breakdown
2005 (2005 (€€ mlnmln))Italian Fund Industry
Source: Company / Assogestioni
9M06 (9M06 (€€ mlnmln))Azimut Italian Fund Industry Azimut
CashBond
BalancedFlexible
EquityHedge
-25000
-20000
-15000
-10000
-5000
0
5000
10000
15000
20000
-400
-200
0
200
400
600
800
1000
1200
-200
0
200
400
600
800
1000
AuMAuM 30.09.06 (%)30.09.06 (%)
0%
20%
40%
60%
80%
100%
Industry Azimut
Cash Bond Balanced Flexible Equity Hedge
0%
20%
40%
60%
80%
100%
Industry Azimut
Cash Bond Balanced Flexible Equity Hedge
Funds breakdown by category
AuMAuM 31.12.05 (%)31.12.05 (%)
Source: Company / Assogestioni
3.4
24.2
3.67.9
45.8
15.1
1.0
22.1
33.2
21.7
18.4
3.6
4.4
25.2
8.07.4
41.1
13.9
4.0
18.3
38.3
20.8
15.3
3.3
Mutual fund breakdown by underlying assets
IndustryIndustry AzimutAzimutTotal Equity 26.9% Total Equity 52.3%
Source: Company / Assogestioni / Il Sole 24 ore - data as at the end of September 2006
Other3.6%
Italian eq.11.0%
Foreign Eq.41.3%
Gov.t Bonds43.5%
Ital./For. Bonds0.7%
For. Bonds 11.8%Ital. Bonds
0.7%
Gov.t Bonds50.8%
Foreign Eq.21.3%
Italian eq.5.6% Other
7.2%
Distribution
Funds – net inflowsNet inflows as a % of the AuM
Source: Assogestioni
Azimut Italian asset managers Italian industry
-1%
0%
1%
2%
3%
4%
5%
jan-
03fe
b-03
mar
-03
apr-
03m
ay-0
3ju
n-03
jul-0
3au
g-03
sep-
03oc
t-03
nov-
03de
c-03
jan-
04fe
b-04
mar
-04
apr-
04m
ay-0
4ju
n-04
jul-0
4au
g-04
sep-
04oc
t-04
nov-
04de
c-04
jan-
05fe
b-05
mar
-05
apr-
05m
ay-0
5ju
n-05
jul-0
5au
g-05
sep-
05oc
t-05
nov-
05de
c-05
jan-
06fe
b-06
mar
-06
apr-
06m
ay-0
6ju
n-06
jul-0
6au
g-06
sep-
06oc
t-06
-1%
0%
1%
2%
3%
4%
5%
Funds – net inflowsTop 10 losers represent more than 2/3 of total industry
Source: Assogestioni – 2006 ytd net inflows into managed assets
Best 10 players for net infows (14.6% m.s.) Worst 10 players for net infows (66.9% m.s.)
-4 5 0 0
-4 0 0 0
-3 5 0 0
-3 0 0 0
-2 5 0 0
-2 0 0 0
-1 5 0 0
-1 0 0 0
-5 0 0
0
ANTO
NV.
ABN
AM
RO
DEU
TSC
HE
BAN
K
MPS
CA
- NEX
TRA
ARC
A
CR
EDEM
UN
ICR
EDIT
BNL
CAP
ITAL
IA
EUR
IZO
N
0
500
1000
1500
2000
2500
3000
3500
JP M
OR
GAN
CR
EDIT
SU
ISSE
AZIM
UT
BPU
UBS
MED
IOLA
NU
M
KAIR
OS
GEN
ERAL
I
HED
GE
INV.
ERSE
L
3Q06 Financials
5,740141,311
45,16510,5399,023
211,778-104,317-11,256-26,889-2,099
-144,560
67,217
% 20059M059M0615.237.1
-26.339.337.7
15.422.035.415.492.6
22.3
3.1
4,984103,072
61,2837,5646,551
183,454-85,527-8,311
-23,308-1,090
-118,236
65,218
Consolidated Reclassified Income StatementIAS/IFRS Compliant
Data in € 000
Entry commission incomeFixed management feesVariable management feesOther incomeIns. premiums net of reserves
Total RevenuesDistribution CostsCommissions on no load productsPersonnel and SG&ADepreciation, amort./provisions
Operating Costs
Operating Profit
7,620143,284
71,33110,7509,612
242,597-118,399-11,469-30,391-1,818
-162,077
80,521
% 20059M059M06
Consolidated Reclassified Income StatementIAS/IFRS Compliant
Data in € 000
Operating ProfitIncome from financial operationsNon operating costsInterest expenses
Profit Before TaxIncome taxDeferred taxes
Consolidated Net ProfitMinorities
Net Profit
67,2173,936
-0,450-4,881
65,822-17,445-3,524
44,853-0,387
44,466
65,2180,882
-1,198-4,792
60,110-15,353-5,030
39,7270
39,727
80,5211,129
-1,636-6,510
73,504-19,977-4,439
49,088-0,043
49,045
3.1346.3-62.4
1.9
9.513.6
-30.0
12.9
11.9
Effective tax rate
Adjusted Net Profit
26.5%
47,99025.5%
44,757
27.2%
20059M059M06
Cost control - Profitability of new initiatives
Data in € 000
“CORE” PERSONNELL AND SG&A COSTSNew initiatives (AZ Investimenti, Azimut CM)*REPORTED PERSONNELL AND SG&A COSTS
-23,175-3,714
-26,889
-22,358-0,950
-23,308
-28,330-2,061
-30,391
Azimut Capital Management contribution in 9M06: €6.7m revenues €2.0m net profitAZ Investimenti contribution in 9M06: €14.5m revenues €1.8m net profit
In addition to the two new initiatives launched during 2005, AZ Life, launched in 2004, posted a € 6.4m net profit in 9M06 vs. € 2.9m in 9M05
* Azimut CM: consolidated in 2005, operating since beginning of July 2005AZ Investimenti: operating and consolidated since July 2005.
31.12.0530.06.0630.09.06
Consolidated Net financial positionIAS/IFRS Compliant
Data in € 000
Amounts due to banks:Senior LoanVendor Loan (AZ Investimenti SIM)Securities issued:Convertible bond
Amounts due to financial institutions:Trademark lease-back
TOTAL DEBT
Cash and cash equivalents
NET FINANCIAL POSITION
(67,375)(55,000)(12,375)(95,770)(95,770)
--
(163,145)
136,297
(26,848)
(102,434)(90,085)(12,349)(97,170)(97,170)
--
(165,207)
112,387
(52,820)
(107,335)(95,104)(12,231)(96,371)(96,371)
--
(203,706)
126,327
(77,379)
31.10.06
(12,423)-
(12,423)(96,044)(96,044)
(24,900)(24,900)
(133,367)
N.A.
N.A.
After the sale and lease back of the trademark the Senior Loan has been paid off; the balance between the commitment for future leasing payments (€ 24.9m) and the outstanding debt (€55m) has been reimbursed cash in October.
20059M059M06
Consolidated Cash Flow StatementIAS/IFRS Compliant
Data in € 000
Net income (loss)Amortisation, depreciation and other provisionsInterest expenseCommissions on no-load productsTax provisions (tax asset uses)Net change in credits and debts and technical reservesNet change in tax assets/debts
Cash flow from operating activities(Increase)/decrease in other assets(Increase) in investment subsidiariesCash flow from investment activitiesDebt and interest repaymentCapital increase (incl. IPO fees and stock options)Dividends paidConsolidation of AZ Investimenti
Cash flow from financial activities
TOTAL CASH FLOW GENERATED (ABSORBED)Cash and cash equivalents at beginning of periodCash and cash equivalents at the end of period
44,4665,9514,984
11,25620,969(6,522)
(11,587)
69,517(0,878)
-(0,878)
(45,443)1,212
(14,438)-
(58,669)
9,970126,327136,297
39,7274,8834,8468,311
20,383(9,600)(0,701)
67,849(4,699)(0,550)(5,249)
1,4430,363
(7,214)4,923
(0,485)
62,11549,826
111,941
49,0458,3136,615
11,46924,417(8,172)(5,238)
86,449(6,312)(0,550)(6,862)
0,495(1,290)(7,214)
4,923
(3,086)
76,50149,826
126,327
New hedge fund company:Start of authorisation process for a new hedge fund company based in DublinFirst product available in 1Q07, subject to regulatory approval, will be a single manager HFNew product launches:Products based on quantitative analysisRecruitment advertising campaign:Running from end of October until beginning of December for both networksRecruitment, from September, went back to its usual path of new additions to the network
Growth of Lux-domiciled funds:Still high pressure on back office due to large inflows into AZ Funds due to both repricingand to new product offering
Outlook
Contacts
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 its members, directors, officers or employees or any other person. 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.
Fabrizio Armone Investor Relations Manager tel. [email protected] www.azimut.it