Interim Results Presentation December 2015 Tim Woolley (CEO) John - PowerPoint PPT Presentation

Interim Results Presentation December 2015 Tim Woolley (CEO) John Mansell (COO) This presentation is for one-on-one use with non-US professional investors only www.polarcapital.co.uk

Contents Section I • Business Review Section II • Financial Review For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 2

Financial Review Highlights • AUM – AUM at 30 September 2015 US$10.9bn from US$13.4bn at September 2014 – AUM at 30 November 2015 US$12.0bn • Profitability – Pre-tax (pre SBP) profits £13.3m (2014: £12.7m) – Core operating profit excluding performance fees £12.4m (2014: £13.9m) • EPS and Dividend – Adjusted diluted EPS 11.46p (2014: 10.75p) 1 – Dividend of 5.5p (2014: 5.5p) to be paid in January 2016 – Company considering bringing forward July 16 dividend to March 16 • Balance Sheet – Strong balance sheet comprising cash and investments of £75.1m (2014: £63.4m) Source: Polar Capital. 1: Adjustment excludes cost of share based payments. Past performance is not indicative or a guarantee of future results. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 3

Polar Capital AUM Significant AUM growth but not linear $bn 16 14 $13.4 $13.2 $12.3 $12.0 12 $11.4 $10.9 10 8 $7.2 6 $5.3 $5.1 $3.9 $3.9 4 $3.1 $2.5 $1.9 2 $1.5 0 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Nov-15 Source: Polar Capital, 30 September 2015. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 4

AUM Growth Analysis 30 Sep 2014 30 Sep 2015 % Increase US$’m US$’m Year on Year Japan 5,300 3,034 (42.8%) 7,139 6,759 Long Only (ex Japan) (5.3%) Technology 1,899 1,866 (1.7%) Healthcare 1,170 1,452 24.1% Financials 979 1,033 5.5% GEMs 972 504 (48.1%) North America 2,024 1,761 (13%) Global Alpha 95 101 6.3% European Income - 43 N/A Absolute Return Funds 983 1,137 15.7% Overall 13,422 10,930 (18.6%) Source: Polar Capital. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 5

AUM Flows AUM at 31 March 2014 $13.2bn Gross inflows Total [long 3,989 hedge 475] $4,464m Gross outflows Total [long 6,216 hedge 290] $(6,506)m Net flows $(2,042)m Performance and currency movements $1,049m AUM at 31 March 2015 $12.3bn Gross inflows quarter 1 [long 805 hedge 69] $874m quarter 2 [long 1,151 hedge 110] $1,261m Gross outflows quarter 1 [long 1,400 hedge 60] $(1,460)m quarter 2 [long 1,339 hedge 45] $(1,384)m Net flows $(709)m Performance and currency movements $(691)m AUM at 30 September 2015 $10.9bn Source: Polar Capital. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 6

AUM Analysis Investor mix by geography AUM split by strategy 61.3% UK Long Only 89.6% Europe 32.1% Alternative 10.4% USA 3.8% Other 2.8% AUM split by business unit Investor mix by holdings Japan 27.8% Bank 27.5% 17.1% Technology Private Wealth Manager 16.5% North American 16.1% Polar Investment Company 15.5% Healthcare Asset Manager 13.3% 13.5% Financials 9.4% Platform 8.2% European 6.2% Fund Of Funds 7.4% Emerging Markets 4.6% Consultants 1.6% Convertibles 4.0% Family Office 1.6% Global 0.9% Pension Fund/Foundation 1.0% 0.4% European Income Insurance Company 0.9% 0.2% UK Absolute Return Other 6.2% Source: Polar Capital, 30 September 2015. Totals may not sum due to rounding. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 7

Product Concentration March March March September 2013 2014 2015 2015 Technology 17% 14% 17% 17% Japan 33% 43% 31% 28% North America - 13% 16% 16% Europe 10% - - - Total of top 3 strategies 60% 70% 64% 61% Number of teams 11 9 11 11 Number of teams with assets > 7 7 7 7 $500m Number of teams with assets > 2 5 5 5 $1 bn Source: Polar Capital, 30 September 2015. Based on the top 3 strategies. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 8

Fund Capacity Strategies AUM 30 September 2015 Capacity Technology $2bn+ $1.9bn Japan $3.0bn $5bn+ Europe $0.7bn $1bn+ Healthcare $1.5bn $5bn+ Financials $2bn+ $1.0bn Convertibles $0.4bn $1bn+ Emerging Markets $0.5bn $2bn+ North America $1.8bn $3bn+ Global Equity $0.1bn $5bn+ UK Equity ARF - $1bn+ European Income $2bn+ - Total $10.9bn $29bn+ Source: Polar Capital. Totals may not sum due to rounding. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 9

Investment Teams The original vision still holds true Ten to twelve world class investment teams Pre 2010 2010 2011 2012 2013 2014 2015 Technology Technology Technology Technology Technology Technology Technology Japan Japan Japan Japan Japan Japan Japan Europe Europe Europe Europe Europe Europe Europe Healthcare Healthcare Healthcare Healthcare Healthcare Healthcare Healthcare Financials Financials Financials Financials Financials Financials Convertibles Convertibles Convertibles Convertibles Convertibles Convertibles Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets North American North American North American North American North American Global Equity Global Equity Global Equity Global Equity UK Absolute Return UK Absolute Return European Income European Income Source: Polar Capital, September 2015. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 10

Product Overview Alternative Long only Cayman UCITS Global Technology European Forager Japan Japan Alpha European Conviction Healthcare Opportunities ALVA Global Convertible Asian Financials Financial Opportunities UCITS Income Opportunities Global Insurance Global Convertibles Emerging Markets Growth UK Absolute Equity Emerging Markets Income North American Global Alpha Biotechnology Healthcare Blue Chip European Income European (ex-UK) Income Investment trusts Global Technology Global Healthcare Growth and Income Global Financials Managed accounts Japan Emerging Markets Convertibles Source: Polar Capital, September 2015. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 11

Lipper Figures 6 months 1 year 3 years 5 years Since inception % Growth to % Growth to % Growth to % Growth to % Growth to universe position/ universe position/ universe position/ universe position/ universe position/ Quartile universe total Quartile universe total Quartile universe total Quartile universe total Quartile universe total Healthcare Opportunities 4 / 69 85 / 105 4 24 / 99 1 5 / 88 1 4 / 85 1 1 (USD) 3.12.2007 Biotechnology 3 / 28 9 / 32 2 2 / 31 1 N/A N/A N/A N/A 1 (Retail USD) 1.11.2013 Healthcare Blue Chip 61 / 97 73 / 105 80 / 99 3 4 N/A N/A N/A N/A 3 (I USD) 12.9.2014 Emerging Markets Growth 148 / 377 438 / 659 3 462 / 615 3 311 / 500 3 N/A N/A 2 (Retail USD ) 1.12.2010 Emerging Markets Income 35 / 383 403 / 659 3 531 / 615 4 308 / 500 3 N/A N/A 1 (Retail USD) 21.1.2011 Asian Financial 2 / 7 60 / 68 4 36 / 68 3 51 / 65 4 34 / 60 3 1 (USD) 5.12.1996 Financial Opportunities 8 / 62 14 / 68 7 / 68 16 / 65 1 1 1 N/A N/A 1 (Retail USD) 3.5.2011 Income Opportunities 8 / 240 104 / 439 14 / 426 6 / 372 4 / 296 1 1 1 1 1 (Retail GBP) 15.10.2009 Global Insurance 4 / 14 1 / 68 1 1 / 68 1 1 / 65 1 1 / 60 1 2 (Retail GBP) 19.10.1998 Global Technology 7 / 30 6 / 47 1 15 / 47 2 9 / 44 1 29 / 42 3 1 (USD) 19.10.2001 Japan 8 / 136 156 / 316 2 68 / 303 1 161 / 276 3 112 / 257 2 1 (Retail JPY) 19.10.2001 Japan Alpha 155 / 275 255 / 316 206 / 303 106 / 276 N/A N/A 3 4 3 2 (Retail JPY) 31.10.2012 Global Alpha 440 / 1068 347 / 1421 1 392 / 1343 2 440 / 1068 2 N/A N/A 2 (Retail USD) 30.11.2012 North American 102 / 593 112 / 778 1 115 / 756 1 160 / 640 1 N/A N/A 1 (Retail USD) 15.11.2011 European Income 29 / 94 47 / 98 2 25 / 94 2 N/A N/A N/A N/A 2 (Retail EUR) 30.10.2014 European Ex UK Income 40 / 100 N/A N/A N/A N/A N/A N/A N/A N/A 2 (I EUR) 30.6.2015 Source: Lipper. Basis: Net of fees. Currency as stated. Past performance is not indicative or a guarantee of future results. Date: 30 November 2015 For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 12