Acta Holding ASA rd quarter presentation 9 CEO Geir Inge Solberg CFO Christian Tunge 8th October 9 Agenda Highlights third quarter 9 Lower costs Revenues advisors Acta Invest Interim financial statements Segment information Company outlook Disclaimer: No forward-looking statements in this presentation must be understood as any guarantees for the future.
Highlights rd quarter 9 New business plan successfully implemented Profitable operations, EBIT of NOK million Gross subscriptions of NOK 77 million Revenues of NOK million Recurring revenues of NOK 7 million, coverage factor to fixed costs of 7% Assets under management of NOK 77 billion compared with NOK 78 billion the previous quarter Stable client base Lower costs Fixed & activity-based costs (mnok) 65 6 55 5 5 5 5 5 5 6 8 96 68 Activity-based 5 Fixed Q 8 Q 9 8 Annualised 9/ Annualised fixed and activity-based costs will total approximately NOK 5 million Recurring revenues will cover fixed costs of slightly below NOK million annualised Acta has reduced the operational risk significantly and is well positioned to ensure future profitability in its operations
Improved performance per advisor Gross subscription (mnok) Transaction related revenues (mnok) 9 8 7 6 5 79 Total 77 Per advisor.5.5.5.5 6 5 Total Per advisor..9..8.6....8.6.. Q 8 Q 9 Q 8 Q 9 Q 8 Q 9 Q 8 Q 9. Quarterly gross subscription down, but average subscription per advisor increased from NOK million for the third quarter 8 to NOK million this quarter Transaction related revenues of NOK million, which corresponds to NOK 88 thousands per advisor compared to NOK thousands the same quarter last year 5 Increased focus on HNWI ) 8 7 6 5 Assets under management as of.9.9 77 6 Acta Invest Total AUM (in billion NOK).5 AUM per clients (in million NOK) 9 8 7 6 5 6, clients in Acta Invest New model well received AUM in Acta Invest totals NOK 6 billion The average AUM per client in this concept is NOK.5 million 9, client meetings in the quarter (August and September) which corresponds to an average of approximately 6 client meetings per advisor ) High Net Worth Individuals 6
87, clients, in Norway and 5, in Sweden 9 8 Norway Sweden Stable number of clients both in Norway and Sweden compared to previous quarter 7 6 5 Average assets under management per client Norway.5 million kroner Sweden.5 million kroner Average.9 million kroner Total revenues from existing clients ) Norway 86.9 percent Sweden 9. percent 8 Q9 Q9 Q9 ) YTD - New clients defined as clients with no placed orders prior to st Jan 9 7 Return on clients assets in third quarter ) Mutual fund returns ) Real estate returns ) % % % Real Estate Target - % Return on assets of average client portfolio for the third quarter is -.% ) Returns in NOK, not annualised ) Return on clients investments within given fund selection ) Real estate project values are updated quarterly, based on estimates from independent brokers, or official bids for single properties or portfolios of properties. Volume weighted. 8
Return on clients assets Return on assets of average client portfolio Boligutleie Holding I - III Index (.. = ) 6 5 9 8 Return on clients' assets MSCI All Country World Index 7 5 6 7 8 9 Source: Acta Asset Management Boligutleie Holding Index (NOK) 5 9 Swedish Real Estate Index (RHS) Boligutleie Holding I - III 5 6 7 8 9 5 5 5 5 Stockholm SE Real Estate Index (NOK) Source: Reuters EcoWin, Acta Asset Management 9 Gross subscriptions Gross subscriptions (mnok) Gross subscriptions per asset class 5 75 7 Sweden 8 Norway % 9 % 8 % 7 % 6 % 5 % % % 7 % % % 6 % % % % 8 % % % % 5 % % 9 % % 7 % 8 % 5 % % 9 % % Bonds Renewable Energy Infrastructure Private equity Shipping Real Estate Index products Unit Linked Mutual/Hedge funds 6 9 8 59 65 8 95 9 Q8 Q8 Q9 Q9 Q9 % % % % % 8 % 8 % 5 % Q9 Q8 YTD 8 Total subscriptions of NOK 77 million Well diversified subscriptions between asset classes 5
Assets under management 9 8 7 6 5 Assets under management (bnok) Assets under management per asset class ) Norway Sweden 5 89 8 78 77 8 7 7 57 5 5 5 8 Q9 Q9 Q9 6 Other Mutual/Hedge Funds Index products Private Equity Shipping Unit link Real estate incl.debt Infrastructure Decrease in AUM of NOK.5 billion compared to previous quarter, primarily related to currency fluctuations in Real estate and maturity of Index products of NOK.7 billion. ) Billion NOK Key financial data Q Q -Q -Q mnok 9 8 9 8 8 Transaction revenues from new clients ) 5 6 97 Transaction revenues from existing clients )) 6 7 8 77 5 Total Transaction revenues 55 57 65 Recurring revenues 7 89 Other revenues - Total revenues 77 87 98 Variable operating costs 6 9 59 Activity based costs 8 6 67 57 Fixed costs 68 96 78 7 Depreciation a.o. 5 Operating earnings - -7 8 5 EPS. -.8 -..59. ROE ) - annualised - % -9 % -6 % % 8 % ) New clients defined as clients with no placed orders prior to Jan 9 ) Assumed same split on revenues from structuring fees as for subscription fees. ) After tax Revenues down NOK 7 million compared to the third quarter 8. Recurring revenues of NOK 7 million Reduction in activity based and variable costs due to lower subscription volumes Reduction in fixed costs due to restructuring of Acta Operating earnings ended at NOK million in the quarter, an improvement of NOK million compared to the third quarter 8. 6
Revenues Total revenues (mnok) Recurring fees (mnok) Quarterly revenues down NOK 7 million from Q8. Reduction in subscription levels and recurring revenues the reasons for the decrease. Recurring revenues of NOK 7 million, which is NOK million more than the previous quarter Recurring revenues cover fixed costs of slightly less than NOK million on an annual basis Variable operating costs 8 9 Variable operating costs down 56% compared with the corresponding quarter 8. Advisor bonuses with the largest reductions. 69 55 Reduced subscription volumes main reason for the decrease. 5 This corresponds well with Acta s favourable business model; where costs are highly correlated to subscription levels and revenues Q Q Q Q 7
Fixed & activity-based operating costs Fixed & activity-based operating costs (mnok) Recurring revenues/costs ) Activity Based Costs Fixed Costs % % 9 % 5 6 59 6 5 5 8 % 7 % 6 % 8 5 % 5 7 5 96 5 95 68 % % - Q8 Q8 Q8 Q8 Q9 Q9 Q9 % Q6Q6Q6Q6Q7Q7Q7Q7Q8Q8Q8Q8Q9Q9Q9 Fixed costs Fixed and activity based costs Fixed costs reduced by NOK 8 million from Q8 and NOK 6 million from Q9 Activity-based costs down NOK 9 million from Q8. Activity-based personnel costs (- 5 mnok) and client acquisition and marketing cost (- mnok) being the main cost deltas Recurring revenues exceeds fixed costs in the quarter and covers 7% of fixed costs. ) Strong third quarter ratio all years due to replacement of salaries with accrued vacation pay in Norway in July. 5 Operating earnings 5 6 8 9 Positive quarterly operating earnings of million kroner, compared to - mnok the same quarter 8 5 86 Q Q Q Q Acta has reduced the operational risk significantly and is well positioned to ensure future profitability in its operations -5 - - -55-6 8
Balance sheet MNOK.9.9..8 Fixed assets 6 6 Goodwill 6 6 Other intangible assets Deferred tax asset 6 Trade receivables 7 6 Other receivables Bank deposits/treasury bills 9 Total assets 6 Acta has very limited risk on its balance sheet The group s liquidity situation is still strong, with net bank deposits of NOK million at the end of the quarter The Group is financially robust Equity 57 Accounts payable - Taxes payable 9 Overdraft facility 5 Other taxes and duties payable 5 Salaries/commissions payable 5 5 Other short term debt 5 6 Total debt 57 Total equity and debt 6 7 Norway Gross subscriptions/advisor ) (mnok) AUM/Client (knok) 5 8 659 667 9 7 6 5 59 5 569 7 5 Q Q Q Q Q Q Q Q ) Includes branch managers, advisors and consultants 8 9
Sweden Gross subscriptions/advisor ) (mnok) AUM/Client (knok) ) Includes branch managers, advisors and consultants 9 Outlook The foundation for sustainable profitable operations is present Further development of the concepts; Partner, Invest, Direct and Markets Budget with recruitment of new advisors per country in Acta expects a good long term market