Acta Holding ASA Presentation 4th quarter 2004

Transcription

1 Acta Holding ASA Presentation 4th quarter 2004 Alfred Ydstebø, CEO Jan Rune Steinsland, CFO Lasse R. Johansen, Area Manager Acta Asker 11 February 2005

2 Contents Highlights 4th quarter Strategy / Advisory services in Acta 4th quarter accounts Segment information IFRS Shareholder matters Perspectives 2

3 Highlights 4th quarter 2004 Very strong gross subscriptions of million kroner an increase of 188% from 4th quarter 2003 Revenues for the 4th quarter of 291 million kroner 160% above 4th quarter 2003, and significantly better than all previous quarters Operating earnings of 154 million kroner compared to 25 million kroner in the same period in 2003 Operating earnings for full year 2004 were 291 million kroner, up from 41 million kroner in 2003 Assets under management increase in the 4th quarter from 25 to 30 billion kroner The Board propose 2004 dividend at 1,25 NOK/share 3

4 33 Advisory offices Ålesund 8 Advisors Tromsø 4 Advisors # Offices Norway Sweden 18 Trondheim 8 Advisors Total 33 # Employees 15 Haugesund 6 Advisors Voss rep. office Bergen 7 Advisors Stord rep. office Hamar 6 Advisors Oslo 11 Advisors Fredrikstad 4 Advisors Borås 2 Advisors Sundsvall rep. office Karlstad 4 Advisors Västerås 7 Advisors Uppsala 4 Advisors Gävlerep. office Advisory Norway Advisory Sweden Sum front office Admin Total employees Stavanger head office 7 Advisors Total 29 Stockholm 13 Advisors Norrköping rep. office Linköping 4 Advisors Tønsberg 4 Advisors Kristiansand 6 Advisors Drammen rep.office Asker 9 Advisors Eslöv 2 Advisors Kristianstad/ 4 Advisors Jönköping 5 Advisors 4 Updated Göteborg 6 Advisors Kungsbacka/Varberg 3 Advisors Halmstad 4 Advisors Malmö 9 Advisors Helsingborg 2 Advisors Lund 3 Advisors

5 Actas vision and strategy Goal and vision Strategic focus Activities The leading independent advisor in the Nordic savings market First class advisory services High market presence Recruitment processes Competence building Customer satisfaction Local presence, office network in N and S On customers bidders list We give advise to freedom! Product leadership Attractive business model and competitive return Product range and quality High degree of innovation High earnings and dividend potential More robust for cyclical shifts 5

6 Acta Asker 2000 customers Total assets under management are 3,3 bn NOK Average investment per customer is approximately 900 knok 10 advisors and two trainees Risk diversification of assets under management 10 % Low Moderate 36 % 54 % High 6

7 Recruitment processes Acta has a demanding recruitment process target group is both newly educated and candidates with industry experience Recruiting process include three interviews on average, as well as testing Acta-academy for new employees three seminar blocks during the first six months Sponsor arrangement with senior advisors for the first six months after this period own customer meetings Advisors have a competitive fixed salary and pension Variable part of total compensation is product neutral 7

8 Competency building Number of advisors Minimum 3 years higher education Average age 93 advisors/12 trainees 94 % 35 years 89 advisors 69 % (+insurance brokers) 36 years Training and development Licensing of advisors Tailor made internal training programs Advisor carees ladder No standard in Norway. Annual internal certification test with focus on client investment profile analysis, product knowledge and business ethics. Starting march 2005 the test is carried out by an external partner. FNHs new code is taken into consideration. Business standard Swedsec established by Broker Association. The Swedish Advisory law is based on Swedsec. All Acta advisors with more than 6 months of experience are licensed by Swedsec. 8

9 Customer satisfaction Acta s advisory concept include central quality assurance of transactions, follow-up and reporting Advisors independence is secured through both wide product range and independence from producer Acta is under supervision of by Kredittilsynet in Norway and Finansinspektionen in Sweden (equal to SEC) Acta has few client cases that are brought to the Bank claim board no cases has ended in Acta s disfavor Regularly measurements of customer satisfaction and follow-up initiatives 9

10 What do you get as an Acta client? Individual advisory service: your need your solution! Leading competancy within investments A permanent advisory team Access to Norways largest product range Customer segmentation and advisory concepts Seminars Good settlement routines 10 Good and optimal savings- and investment solutions based on individual needs

11 Customers Total number of customers Development Q04 Norway Sweden New customers Departed Svenska Spar 4Q04 11 Total number of customers at quarter end is in Norway and in Sweden Number of customers related to acquisition of Svenska Spar is about

12 Gross subscriptions Million kroner Norway Sweden 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 Highest gross subscriptions within index-linked bonds, followed by real estate syndication and unit link Reported gross subscriptions for 4th quarter of mnok include about 200 mnok subscribed for throughout all of

13 Good gross subscriptions in all asset classes in % 1 % 17 % 10 % Mutual- and Hedgefunds Unit Link Index-linked bonds 37 % Real estate syndication Other 13 Good gross subscriptions in all asset classes Increased subscriptions of index-linked bonds during 2nd half of 2004 Time-lag between subscription and revenue recognition for real estate syndication in Norway and Sweden also at the end of 4th quarter represents future revenue potential

14 Leading position in the syndication market Syndication companies Million kroner No. of projects YTD Value No. projects in market this year Value No. Of projects last 5 years Value Orkla Finans 1) Tschudi & Malling Eiendom as Acta 2) Ness, Risan & Partners as Aberdeen Property Union 4) First Securities 3) Pareto Private Equity asa Fearnley 4) DnB Nordea 5) Alfred Berg Industrifinans Direkte Investeringer as Total ) Orkla Finans started operations January ) Acta is organised in funds. Three portfolios in the market at the moment with up to 30 projects. 3) First Securities have operated in syndication market for two years. 4) Fernley and Union have no number of projects last five years. 5) Aberdeen started this summer and are organised in funds. 6) Nordea have only operated for three years. 14 Source: Dagens Næringsliv December

15 Assets under management Bn NOK Sweden Norway 0 YE 1998 YE 1999 YE 2000 YE 2001 YE 2002 YE 2003 YE Assets under management 29,5 bn kroner an increase of 4,5 bn kroner last quarter Acquisition of Svenska Spar represents 2,9 bn kroner of the increase in 2004 Growth in assets under management the most important driver for recurring revenues

16 Assets under management split (BN NOK) Aksje- og hedgefond Unit Link Index-linked bonds 15 7 Real estate syndication Other Significant share of mutual fund exposure through unit-link products Real estate project debt (approximately 10 of 15 bn NOK) included in asset class Real Estate, as the advisory mandate and recurring revenues are based on total project values 16

17 Key financial data 4Q 4Q Mnok Transaction revenues Management fees Total revenues Variable operating costs Fixed operating costs Op. earnings before depr Depreciations Other Operating earnings Net financial items Net income before tax Tax Net income after tax Best quarterly revenues and earnings ever High variable costs primarily due to high subscription volume Low effective tax rate reflects the posting of a 35 mnok deferred tax asset previously not accounted for 17

18 Record levels for revenues Million kroner Highest revenue level ever, primarily due to high subscription volume Transaction related revenues and other revenues of 273 mnok Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 Management fees of 18 mnok an increase of 3 mnok from 3rd quarter Management fees Transactionrel.- / other revenues 18

19 Good recurring revenue growth rate Million kroner Quarterly average 2004 Recurring revenues of 18 mnok in 4th quarter, and a positive underlying growth 68 % of assets under management of 29,5 bn NOK generate recurring fees 5 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 Total assets under management generate recurring revenues of approx. 0,26 % per year 19

20 Growth in variable costs from high volumes Million kroner Increase in fixed cost of 11 mnok from 2Q: - Svenska Spar: 5 mnok - Additional Acta staff: 2 mnok - Other personnel cost: 2 mnok - 4Q one offs: 2 mnok Higher variable costs from a high business volume and year-end related charges 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 Depreciations Fixed costs Variable costs 20

21 Variable cost decomposition Million kroner Bonus administration Profit split to advisory offices Variable payroll to advisors from gross subscriptions Q03 1Q04 2Q04 3Q04 4Q04 21

22 Very good results in Acta Norway Gross subscriptions (mnok) Revenues (mnok) Operating earnings (mnok) Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 0 IQ03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 0 IQ03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 Main parameters for 4th quarter (4th quarter 2003 in parenthesis) Gross subscriptions mnok (947 mnok) Revenues 233 mnok (85 mnok) Operating earnings 143 mnok (27 mnok) 81 advisors by quarter end unchanged from 3rd quarter, but continued focus on recruitment 22

23 First year with positive earnings for Acta Sweden 1200 Gross subscriptions (mnok) 70 Revenues (mnok) 20 Operating earnings (mnok) Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 0 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04-10 IQ03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 Main parameters for 4th quarter (4th quarter 2003 in parenthesis) Gross subscriptions 993 mnok (340 mnok) Revenues 58 mnok (27 mnok) Operating earnings 19 mnok (4 mnok) 78 advisors by quarter end a planned reduction of 10 advisors from 3rd quarter, due to the completion of Svenska Spar restructuring 23

24 Operating earnings at record level Million kroner Operating earnings of 154 mnok significantly above any previous quarter Increased operating earnings primarily from increased revenues, partly off-set by higher variable operating costs -50 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 24

25 Solid balance sheet and a very good liquidity MNOK Q Fixed assets Other intangible assets Deferred tax asset Other assets Bank deposits / gov. bonds Total assets Equity Long term debt - interest bearing Short term debt - non int. bearing 42 Dividend 315 Other short term debt Total debt Total equity and debt Very good liquidity situation with 401 mnok in bank deposits and government bonds No interest bearing debt Deferred tax asset of 35 mnok accounted for in 4th quarter The Board propose annual dividend payment of 1.25 NOK/share in total 315 mnok 25

26 Implementation IFRS no significant changes Sum 4Q 3Q 2Q 1Q MNOK NGAAP reported operating earnings Implementation differences Variable payroll costs Restructuring cost -4-4 Reverse Goodwill depreciations IFRS adjusted operating earnings IFRS adjusted accounting numbers will be basis for comparison with 2004 for reporting in 2005 Increased variable costs relate to an increased book reflection of earned but not yet paid variable payroll costs, as these under IFRS can not be viewed in connection with future revenues from real estate projects Restructuring costs relate to the acquisition of Svenska Spar AB Must be booked as cost and not capitalized as Goodwill under IFRS. Calculations are preliminary 26

27 20 largest shareholder as of February Name Shares % Spring Capital AS / Spring Active AS (Ydstebø/Ingebrigtsen) % J.P.Collier / Sanden AS % Lamholmen AS (Roy Myklebust) % ABG Sundal Collier ASA % Banque Franck SA % Kilen AS (Arild Engh) % Carl Palmstierna % Østre Aker vei 68 AS / Bjelland Invest AS % John Willoch / Arbitra A/S % Steinar Lindberg AS % SEB Oslofilialen % Caprice AS % Bank Morgan Stanley AG Zürich % DNB Nor Bank % Geir Ringstad % Nordea Securities % Tor Nygaard % Sand Eiendom AS % Jarle Norman Hansen / Stator A/S % Hansard Europe LTD % 20 largest shareholders % Other shareholders % SUM %

28 Shareholder matters Number of shares outstanding is 251,7 million No outstanding options, warrants etc. No current plans of new option programmes shareholders (1 085 as of year end 2003) Liquidity shares/day ( ) Liquidity 4th quarter shares/day Included in Match -list on Oslo Stock Exchange Acta have applied for transfer from SMB to the Main list at Oslo Stock 28

29 Operational and financial key figures 4Q04 3Q04 2Q04 1Q04 4Q03 AUM/Customer (knok) Total revenues/advisor (mnok) 1,7 0,8 0,8 0,8 0,8 Management fees/fixed costs 25 % 30 % 21 % 21 % 19 % Management fees/aum (Bp/year) Earnings per share before tax - dilluted (nok) 0,62 0,26 0,13 0,16 0,10 Earnings per share after tax - dilluted (nok) 0,58 0,18 0,09 0,11 0,07 Return on capital employed - annualised 174 % 94 % 54 % 66 % 41 % Return on equity - annualised 178 % 98 % 57 % 79 % 59 % 29

30 Perspectives and priorities Very satisfactory subscription volumes in the first part of first quarter Good market conditions provide basis for continued increase in number of advisors both in Norway and Sweden Continous focus on offering the best product range in the market to existing and new customers First quarter is expected to be both operationally and financially significantly better than the corresponding period in 2004 Business model confirms low capital intensity - also by increasing business volumes dividend policy with high earnings pay out ratio can be expected to be continued 30