FY 2020 Full-Year Results Presentation 20 May 2020
Today’s presenters Kim McFarland Hendrik du Toit Finance Director Founder and Chief Executive Officer Background Background – Joined Ninety One in 1993 – Founded Ninety One in 1991 – Former member of the Investec board – Former Investec Joint Chief Executive (September 2018 – March 2020) Officer (September 2018 – March 2020) – Formerly Chief Operating Officer and – Re-appointed Chief Executive Officer of Chief Financial Officer of Ninety One Ninety One in March 2020 – 26 years with the business – 29 years with the business 2
Agenda 01 Business review 02 Financial review 03 Outlook and Q&A 04 Appendices 3
FY 2020 Full-Year Results Business review
FY 2020 key messages Momentous year, but that was last year… 1 2 3 4 Successfu ful l demerger Resil ilie ient business with Net in inflo flows in in lin line with Sta table and experie ienced and lis listin ing as Nin inety consis istent strategy, previous year, soli lid sta taff ff complement, One and bold ld ambit itio ion for clie lient re rela latio ionship ips and supported by the long term diversified offering establi lished cultu lture 5 6 7 Short-term in investment Committed to a Challe llengin ing year perf rformance negativ ively ly capit ital-li light ahead as the world aff ffected by market business model battles with effects of correction in March COVID-19 2020 5
Our purpose Investing for a better tomorrow Better Firm Better Investing Better World We are building a firm that aims Long-term investment We are dedicated to building to achieve excellence over the excellence is our primary a better world through our long term, with a culture that function and is non-negotiable. capital allocation. We are encourages our people to We aim to provide our clients responsible citizens of our reach their highest potential with an investment outcome that societies and natural and puts our clients at the allows them to achieve their environment. centre of our business. financial goals. 6
Response to COVID-19 The safety and wellbeing of our people and clients are our highest priority February March April May January Our stakeholders Early learnings Business continuity All offices shift No related Hong Kong People Care re from Hong Kong plans for working to working from redundancies staff return office from home home or furloughing to office scenarios Business fully operational Proactive approach Client engagement Clients throughout this period to liquidity and service Deliv liver (including outsourcing management continues, albeit providers) virtually AUM No debt; Continued Strategy Shareholders impacted by sufficiently Result lts cost discipline unchanged markets capitalised Staff Proactive Joining the Contributed donation engagement rebuilding effort - Responsib ible Society £2.9m to matching with regulators committed to relief efforts Citi itizenship scheme and building a better governments world 7
Key numbers £103. 4bn Assets ts under r management t (A (AUM) 7% reduction in AUM, while average AUM increased 10% £6.0bn Net t in inflo lows Continued good inflows 5.4% Torq rque ra ratio tio 1 Consistent with the prior year £588.0m Adju justed opera ratin ing re revenue 2 9% increase £198.5m Pro rofit it before re ta tax 11% increase 32.3% Adju justed opera ratin ing margin in 3 Higher than the prior year 16.1p Adjusted EPS 4 - 10% increase Earn rnin ings per r share (E (EPS) Basic EPS 5 – 11% increase 16.8p 39% In Investment t perf rformance 1-year firm-wide outperformance 6 55% 3-year firm-wide outperformance 6 21% Sta taff owners rship ip Aligned with our stakeholders Notes: 1. Torque ratio is the relative scale of net flows in relation to the overall size of the business, expressed as a percentage. Calculated as net flows for the relevant period divided by AUM as at the first day of that period (annualised for non-twelve month periods). 2. Adjusted operating revenue is calculated as net revenue, less Silica third-party revenue and adjusted for foreign exchange gains/losses, deferred employee benefit scheme movements, and other income. 3. Adjusted operating profit margin is calculated as adjusted operating profit divided by adjusted operating revenue. 4. Adjusted EPS is profit attributable to ordinary shareholders, adjusted to remove non-operating items, divided by the number of ordinary shares in issue at the end of the year. 5. Basic EPS is profit after tax attributable to ordinary shareholders divided by the weighted average number of ordinary shares outstanding during the year, excluding own shares held by Ninety One share schemes. 6. Firm-wide outperformance is calculated as the sum of the total market values for individual portfolios that have positive active returns on a gross basis expressed as a percentage of total AUM. Our percentage of firm outperformance is reported on the basis of current AUM and therefore does not include terminated funds. Total AUM exclude double-counting of pooled products and third party assets adm inistered on our South African (“SA”) fund platform. Benchmarks used for the above analysis include cash, peer group averages , inflation and market indices as specified in client mandates or fund prospectuses. For all periods shown, market values are as at the period end date. 8
Organically and sustainably built over nearly 30 years Resilience over time +12% AUM CAGR FY09-FY20 Scaling post crisis phase £103bn +19% AUM CAGR FY98-FY09 Internationalisation phase +93% AUM CAGR FY92-FY98 Domestic growth phase 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 AUM Profit before tax and exceptional items Bear market 1 Notes: Financial years ended 31 March. 1. Bear market defined as a period in which share prices fell 20% (measured by the MSCI All Countries World index) or more from the prior peak and would include the period from the peak in the market to the lowest point of the bear market. 9
Our strategic principles We offer organically- We operate globally in We have an approach to developed investment both the institutional and growth that is driven by capabilities through advisor space through structural medium-to active segregated five geographically long-term client demand mandates or mutual defined Client Groups. and competitive funds to sophisticated investment performance. clients. Patient Organic Long-term Intergenerational 10
Our offering Organically-built and diversified £45.8 bn £ 30.5 bn £ 18.3 bn £ 2.6 bn Core asset class offerings 1 Alternatives Equities Fixed income Multi-asset Distinct skillsets 1 4Factor Quality Value Fixed income Alternatives Multi-asset Client demand Specialist Outcomes Note: 1. Excluding SA fund platform AUM of c.£6.2 billion. 11
UK Global reach AUM £21.9bn o/w Institutional 48% 6% 8% 4% Diversified distribution across global markets Europe AUM £14.5bn o/w Institutional 75% 16% 20% 5% 21 Offices worldwide 5 Asia Pacific 5 Primary investment AUM £17.4bn o/w Institutional 89% centres 15% 22% 8% 5 Regionally defined Americas Client Groups AUM £13.6bn o/w Institutional 79% 21% 30% 6% Africa 4 Key: AUM £36.0bn Ninety One CAGR 2010-20 1 o/w Institutional 62% Ninety One CAGR 2010-18 1 1% 2% 2% Industry CAGR 2010-18 2,3 Notes: 1. Compound annual growth rate (“CAGR”) analysis based on AUM figures in USD; 2. 2010– 18 industry CAGR based on data as at 31 December 2018, except for Africa; 3. Africa regional industry AUM CAGR based on figures from Alexander Forbes as at 30 June 2010 and 30 June 2019 and is for South Africa only; 4. Ninety One’s AUM CAGRs are based on AUM including SA fund platform, and the 201 0-18 CAGR is based on South Africa AUM only; 5. Asia Pacific includes Middle East 12
Assets under management and flows Continued net inflows, AUM impacted by markets FY 2020 4.6% 4.1% (0.8)% 5.6% 5.9% 5.4% Torque ratios: 6.0 1.4 6.1 111.4 3.2 5.4 103.9 (14.0) 103.4 20.2 95.3 3.2 6.4 77.5 3.1 (5.0) 75.7 (0.6) 68.0 £ billion FY14 FY15 FY16 FY17 FY18 FY19 FY20 Net flows Markets/currency 13
Flow analysis Net inflows of £6.0 billion, in line with prior year (FY 2019 of £6.1 billion) Net flows by asset class (£m) Net flows by Client Group (£m) Net flows by client type (£m) 66 100% 100% 227 217 256 108 71 2,292 4,288 3,666 280 593 751 1,549 447 1,212 1,444 981 80% 2,391 80% 2,435 2,908 4,583 1,835 2,670 60% 60% 3,070 2,748 40% 40% 2,537 2,382 2,342 243 1,805 1,703 20% 20% 1,619 0% 0% (215) 1 (92) (614) FY18 FY19 FY20 (288) (20%) (20%) 1 1 FY18 FY19 FY20 FY18 FY19 FY20 United Kingdom Africa Europe Fixed income Equities Multi-asset Advisor Institutional 2 Alternatives SA fund platform Americas Asia Pacific Notes: 1. Net inflows in financial year ended 31 March 2018 of £5.4 billion. 2. Asia Pacific includes Middle East. 14
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