2006 FY RESULTS 15 MARCH 2007

Transcription

1 2006 FY RESULTS 15 MARCH

2 Summary 2006 Highlights Asset management Distribution 2006 Financials 2007 Outlook 2

3 2006 Highlights 3

4 2006 Highlights Significant growth for both asset management and distribution Data in m 2006 total net inflows (mutual funds, hedge funds, life insurance) 2006 Net profit vs EPS: 0.58 vs in , % 2006 Dividend 0.20 ( 0.10 ordinary plus 0.10 extraordinary) Last 10 years of Azimut s growth Assets under management PF - Azimut Consulenza SIM CAGR +16.9% CAGR +8.5% Data in m 4

5 2006 Financials Final figures in the upper part of the range announced on January 07 Data in m Total revenues Net profit EPS (basic) ,60 0,55 0,50 0,45 0, ,35 0,30 0,25 0,20 0,15 0, Preliminary results announced in January 2007: Total revenues: m Net profit: 77-84m EPS: Data in m for Total revenues and Net profit Data in for EPS 5

6 Asset management 6

7 Leading role of AZFund products New product launches and repricing accelerated the existing trend % of LUX-domiciled funds on total AuM in mutual funds 60% 50% 40% 30% 52.3% 20% 41.1% 10% 0% 18.0% 17.8% 15.9% 8.6% 9.4% 11.6% H H H FEB-07 Source: Azimut 7

8 Funds breakdown by category AuM (%) AuM (%) 100% % % % % % % % % 20% % % Industry Azimut Industry Azimut Cash Bond Balanced Flexible Equity Hedge Cash Bond Balanced Flexible Equity Hedge Source: Company / Assogestioni 8

9 Funds breakdown by category 2005 net inflows Italian Fund Industry Azimut 2006 net inflows Italian Fund Industry Azimut Source: Company / Assogestioni reclassified figures - data in m 9

10 Mutual fund breakdown by underlying assets Industry Azimut Total Equity 28.0% Total Equity 52.6% Foreign Eq. 22.0% Ital. Bonds 3.3% For. Bonds 12.4% Foreign Eq. 41.1% Ital./For. Bonds 0.9% Italian eq. 6.0% Other 5.8% Gov.t Bonds 50.5% Italian eq. 11.5% Other 5.4% Gov.t Bonds 41.0% Source: Company / Assogestioni / Il Sole 24 ore - data as at the end of

11 Distribution 11

12 Funds net inflows Net inflows as a % of the AuM Azimut Italian industry 5% 5% 4% 4% 3% 3% 2% 2% 1% 1% 0% 0% -1% -1% -2% -2% Source: Assogestioni monthly press release on mutual funds dotted line: quarterly reclassified Assogestioni data for the Industry 12 jan-03 feb-03 mar-03 apr-03 may-03 jun-03 jul-03 aug-03 sep-03 oct-03 nov-03 dec-03 jan-04 feb-04 mar-04 apr-04 may-04 jun-04 jul-04 aug-04 sep-04 oct-04 nov-04 dec-04 jan-05 feb-05 mar-05 apr-05 may-05 jun-05 jul-05 aug-05 sep-05 oct-05 nov-05 dec-05 jan-06 feb-06 mar-06 apr-06 may-06 jun-06 jul-06 aug-06 sep-06 oct-06 nov-06 dec-06 jan-07 feb-07

13 Still improving the efficiency of the network 2x the avg. AuM per PF and 5.4x the avg. Net inflows per PF Avg. NI per PF: 0.28m Avg. AuM per PF: 6.5m Source: Assoreti out of a sample of the largest PF networks. Data in /000 as at

14 Quality below the figures Satisfaction of the network 2006 Survey by Eurisko External image vs. Internal satisfaction HIGH IMAGE LOW SATISFACTION HIGH IMAGE HIGH SATISFACTION POOR IMAGE POOR SATISFACTION POOR IMAGE HIGH SATISFACTION + BRAND EQUITY INDEX + OVERALL SATISFACTION Source: Eurisko based on the largest Italian PF networks in Eurisko is an independent operator in the social and marketing research sector 14

15 2006 Financials 15

16 Consolidated Reclassified Income Statement IAS/IFRS Compliant Data in 000 Entry commission income Fixed management fees Variable management fees Other income Ins. premiums net of reserves Total Revenues Distribution Costs Commissions on no load products Personnel and SG&A Depreciation, amort./provisions Operating Costs Operating Profit , ,893 89,723 15,452 12, , ,259-14,984-41,218-2, , , % , ,284 71,331 10,750 9, , ,399-11,469-30,391-1, ,077 80,521 16

17 Consolidated Reclassified Income Statement IAS/IFRS Compliant Data in 000 Operating Profit Income from financial operations Non operating costs Interest expenses Profit Before Tax Income tax Deferred taxes Consolidated Net Profit Minorities Net Profit ,735 4,971-0,900-6, ,587-38,147-4,214 85,227-0,859 84, % ,521 1,129-1,636-6,510 73,504-19,977-4,439 49,088-0,043 49,045 Effective tax rate Adjusted Net Profit 29.9% 88, % 17

18 Cost control - Profitability of new initiatives Effective cost increase lower than 10% Data in 000 CORE PERSONNELL AND SG&A COSTS Variable remunerations New initiatives (AZ Investimenti, Azimut CM)* REPORTED PERSONNELL AND SG&A COSTS ,528-7,888-4,877-41, ,149-2,181-2,061-30, new employees in planned new hiring for 2007 (⅓ in Fund management, ⅓in Risk management and internal audit and ⅓in IT, Back Office and Sales) Variable compensations linked to good results achieved 2007E costs increase will be less than 10% yoy Investments finalised for fostering the expansion of foreign - based activities Azimut Capital Management contribution in 06: 12.0m revenues 3.5m net profit AZ Investimenti contribution in 06: 19.8m revenues 2.4m net profit In addition to the two new initiatives launched during 2005, AZ Life, launched in 2004, posted a 9.3m net profit in 06 vs. 4.6m in 05. * Azimut CM: consolidated in 2005, operating since beginning of July 2005 AZ Investimenti: operating and consolidated since July

19 Consolidated Net financial position IAS/IFRS Compliant Data in Amounts due to banks: (37,308) (102,434) (107,335) Senior Loan - (90,085) (95,104) Vendor Loan (AZ Investimenti SIM) (12,231) (12,349) (12,231) Trademark lease-back (25,077) - - Securities issued: (96,510) (97,170) (96,371) Convertible bond (96,510) (97,170) (96,371) TOTAL DEBT (133,818) (165,207) (203,706) Cash and cash equivalents 157, , ,327 NET FINANCIAL POSITION 23,353 (52,820) (77,379) Senior Loan paid off during 2006 in advance of its 2009 expiry date 0.10 dividend confirmed; extraordinary dividend of 0.10 (both subject to AGM approval) NFP is not reflecting 2006 taxes and dividend payment which will be made by 1H07 ( 38m and 29m respectively) 19

20 Consolidated Cash Flow Statement IAS/IFRS Compliant Data in Net income (loss) Amortisation, depreciation and other provisions Interest expense Commissions on no-load products Tax provisions (tax asset uses) Net change in credits and debts and technical reserves Net change in tax assets/debts 84,367 7,782 6,369 14,984 42,360 (8,952) (24,646) 49,045 8,313 6,615 11,469 24,417 (8,172) (5,238) Cash flow from operating activities 122,264 86,449 (Increase)/decrease in other assets (Increase) in investment subsidiaries Cash flow from investment activities Debt and interest repayment Capital increase (incl. IPO fees and stock options) Dividends paid Consolidation of AZ Investimenti (1,446) 0,048 (1,398) (76,110) 0,525 (14,438) - (6,312) (0,550) (6,862) 0,495 (1,290) (7,214) 4,923 Cash flow from financial activities (90,023) (3,086) TOTAL CASH FLOW GENERATED (ABSORBED) 30,844 76,501 Cash and cash equivalents at beginning of period Cash and cash equivalents at the end of period 126, ,171 49, ,327 20

21 2007 Outlook 21

22 2007 Outlook Product range ongoing transformation Total AuM split by funds category Main changes effective April/July, % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 29.6% 2,392m 33.2% 3,609m 44.9% 5,843m 49.8% 6,677m 67.0% 8,986m * Equity funds: only FoF investing in 3rd parties products Almost 80% of AuM in long-only mutual funds will be in products which can switch from equities to other asset classes, including cash (with no limit for flexible funds) Bond funds: institutional clients and limited component of retail clients allocation Cash Bond Balanced Flexible Equity Hedge * Simulation based on February-end AuM 22

23 February 2007 New product launches 4 new funds offered by AZFund 2 bond fund: AZFund Bond Trend AZFund Income 1 balanced fund: AZFund European balanced 1 quant fund: AZFund QProtection Focus on AZFund QProtection Flexible fund domiciled in Luxembourg Reference benchmark: 35% Eurostoxx50, 65% MTS Bot (risk free) Equity exposure: 0-70% Targets: Protection: 90% of the highest NAV, regardless of the subscription date Return: 60% Eurostoxx50 during a market cycle Risk: 50% of Eurostoxx50 volatility Already reached 158m AuM in the first month of activity 23

24 2007 Outlook Ongoing focus on organic growth Recruiting: Hedge fund: Usual new PF in Azimut Consulenza sim Additional recruiting from AZ Investimenti sim Ireland-domiciled hedge fund under authorisation Further expansion in the product offering but actively searching for additional opportunities not only in domestic market External growth: Foreign expansion: Opportunistic M&A Extreme flexibility in opening new markets 0% AZIMUT SHAREHOLDING G 100% Distribution agreement Institutional sales White label Partnerships Joint Ventures Newco (spinoffs) Acquisitions Spinoff : Newcos can be created with PMs who whould like to spinoff and set up a company avoiding to cope with all other aspects but fund management Joint Ventures: interest in partnerships with banks for which Azimut is the ideal technical partner, not competing in the banking services Product development possible for long only products in LUX, hedge funds and life insurance in IRL 24

25 Contacts Fabrizio Armone Investor Relations Manager tel 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. 25