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1H12 Results
Milan, 31st July 2012
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1H12 ResultsTable of contents
1H12 Highlights
Asset Management
Distribution
1H12 Financials
Outlook
About Azimut
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1H12 Highlights
Asset Management
Distribution
1H12 Financials
Outlook
About Azimut
1H12 Results
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Strong first half results for the Azimut Group
Source: Company data
1H12 Highlights
Total revenues: €214 million
vs. €174 million in 1H11
All time high 1H total
revenues
+23% +76% +98%
Financials Net Financial PositionTotal Revenues Net Profit
Net profit: €79 million vs. €45
million in 1H11
All time high 1H Net profit
Matched FY 2011 Net profit
in just 6 months
NFP: €147 million vs. €74
million in 1H11
Already net of €34 million
dividends paid in May
Maintained one of the
highest levels of Net Cash
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Strong first half results for the Azimut Group
Source: Company data
1H12 Highlights
Group Total AuM at 1H12 reached € 18.6 billion vs. €16.4 billion in
1H11, of which:
€ 16.5 billion of managed assets (vs. € 14.4 billion in 1H11)
All time high Assets under Management maintained
Assets under Management Total Inflows
+15%+13%
Total Inflows in 1H12 of
€ 865 million
Inflows into managed
assets at € 838 million
Best first half result since
2007
+603%
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Strong managed AuM growth continues in the first 6 months despite difficult markets
Source: Company data
Managed AuM growth in a 3 year
period remains strong at +31%
Growth is continuing in the first half
of 2012 with an increase of 13% in
managed AuM thanks to positive
inflows and supportive markets
1H 2012 total inflows make up
almost 80% of the entire inflows
of 2011
Total Group AuM as of 30/06/2012
(including assets under
administration) stood at €18.6bn,
+12% vs. end‐2011 and +13% vs.
30/06/2011
Assets under Management evolution
+13%
+31%
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12‐month performance above listed peers and FTSE MIB
Source: Company data
Azimut is more resilient to market
downturn, with significant upside
potential still to be exploited:
Innovative player with unique
product offering
Not a Bank or Insurance
company (with the relative
risks and constraints)
Strong balance sheet
Superior cash generation
Best‐in‐class profitability
Geographical expansion and
diversification
Share price performance
+26%
-5%
-29%
-13%
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1H12 Highlights
Asset Management
Distribution
1H12 Financials
Outlook
About Azimut
1H12 Results
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Source: BloombergRisk free: MTSIBOTR Index (net of 12.5% withholding tax)
Italian industry index: FIDMGEND Index
+3.1
+1.9
Challenging 2Q but Azimut still above both the Risk‐free and the Italian industry
Asset Management ‐ Performance
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Source: Company data
Fund of Funds are quite entirely for asset classes not managed in house
Asset Management – Evolution
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Source: Company data at 30/06/2012
Fund of funds have the same margin as in house funds
Luxembourg Funds – 1H12 breakdown
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TARGET
FORMULA TARGET 2014, FORMULA TARGET 2015, INSTITUTIONAL TARGET, BOND TARGET 2015, BOND TARGET JUNE 2016, INTERNATIONAL BOND TARGET
JUNE 2016, BOND TARGET SEPT. 2016
0‐30% EQUITYF1 CONSERVATIVE, CORPORATE PREMIUM , CGM
OPPORTUNISTIC CORPORATE, CGM OPPORTUNISTIC GOVERNMENT, SOLIDITY
0‐70% EQUITYEUROPEAN DYNAMIC, DIVIDEND PREMIUM,
STRATEGIC TREND
0‐100% EQUITY
F1 ABSOLUTE, TREND, ITALIAN TREND, PACIFIC TREND, AMERICAN TREND, EUROPEAN TREND, LONG TERM VALUE, CGM OPPORTUNISTIC EUROPEAN, CGM OPPORTUNISTIC GLOBAL
MARKET NEUTRAL F1 ALPHA PLUS
QUANT QBOND, QPROTECTION, QTREND, QINTERNATIONAL
MACRO MACRO DYNAMIC TRADING
COMMODITIES COMMODITY TRADING
EQUITY LONG/SHORT ACTIVE SELECTION, CORE BRANDS
MULTI ACTIVE STRATEGY
CASH MANAGEMENT CASH OVERNIGHT, CASH 12 MONTH
OTHEROTHER SINGLE MANAGER (RMB OPP. CAT BOND, PATRIOT, GLOBAL CURRENCIES & RATES, ETC.)
FOFs MULTIMANAGER FOFs
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By Category
Source: Company data at 30/06/2012
By underlying asset
Total Equity 31%
Azimut funds breakdown
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53.2%
Austria, Belgium, Finland, France, Germany, Italy,
Netherlands
Equities
Source: Company data at 30/06/2012
Fixed Income
Azimut Funds – breakdown by underlying securities
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14Source: Company dataNote*: ISIN AZ1GCAA
Note (1): CHF, GBP, USD, CAD, JPY,AUD, SEK, NOK, NZD
AZFUND Global Currencies & Rates* is a global fundinvesting in 21 different currencies, providing a uniquediversification from the Euro while at the same timegranting access to some currencies which are not directlyaccessible.
Main characteristics include:
High currency diversification
Low correlation to interest rates
Active management of the fund (internationalgovernment bonds) limiting its total duration (ca. 2years) with a technical overlay through options
Investment in 8 main currencies weighting 48% and 13minor currencies weighting 52%
Annual dividend payment
Global Currencies & Rates is a unique and innovativeproduct in the international asset management industry.
June 2012: launch of Global Currencies & Rates fund, once again at the forefront of innovation
Product Snapshot – Global Currencies & RatesUnparalleled product innovation
Exposure by geography Exposure by currency
Map of global currencies
(1)
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1H12 Highlights
Asset Management
Distribution
1H12 Financials
Outlook
About Azimut
1H12 Results
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Azimut Italian Funds’ Industry
Source: Company out of Assogestioni monthly figuresNote *: CGM acquisition
2006 – 12 Funds’ net inflows as a % of total managed assets
Distribution ‐ Funds
*
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31/12/11 In Churn 30/06/2012
1,051 25 ‐2.8% 1,047
238 21 ‐2.9% 252
101 7 ‐5.9% 102
TOTAL 1,390 53 ‐3.0% 1,401
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Churn includes retired FAsApogeo PFs do not include hiring by the former Cattolica sim
Azimut continues to recruit top quality financial advisors from competition
Distribution – Recruitment of FAs
Source: Company data
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High quality clientele granting superior resilience to Italian macroeconomic crisis
Distribution – Clientele breakdown
Source: Company data as of 30/06/2012
Customers segmentation based on Assets
under Management volumes:
Smaller Wealth: below € 12,500
Medium Wealth: from € 12,500 to €
125,000
Affluent: from € 125,000 to € 500,000
High Net Worth Individuals: above €
500,000
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1H12 Highlights
Asset Management
Distribution
1H12 Financials
Outlook
About Azimut
1H12 Results
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Consolidated reclassified Income StatementIAS/IFRS Compliant
Source: Company data
Income Statement
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NFP at the end of June is already net of € 2m for shares buyback in 1H12 ‐ Treasury shares are not
booked within the NFP but in the balance sheet for €100 million (as of 30/06/2012: 12mln shares or
8.4% of s.c.).
NFP at the end of June is net of:
€34mln for dividends paid (May 24)
Cash and Total debt at the end of June do not include:
€17.7mln subordinated bond partial repayment (July 1)
Consolidated reclassified Balance SheetIAS/IFRS Compliant
Source: Company data
Balance Sheet
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1H12 Highlights
Asset Management
Distribution
1H12 Financials
Outlook
About Azimut
1H12 Results
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Azimut achieved strong results in 1H12, both in terms of P&L as well as inflows and AuM
Clearly influenced by a record 1Q, with a 2Q in line with 2Q11
Demonstrated not only the ability to fully catch the upside market potential, but also to be more resilientto market downturns compared to competition
Contribution of variable management fees in 1H12 was significant, tripling the result of both 1H10 and 1H11
We reiterate that in a worst case scenario of no further variable management fees for the rest of the year,FY 2012 Net Profit could still be in the region of € 100 million, above both 2011 and 2010
1H12 inflows were strong, making up almost 80% of 2011 total inflows. July numbers are encouraging and weconfirm our target to achieve €1‐1.5bn of Net Inflows in 2012
International operations moving forward:
An Zhong (AZ) Investment Management Hong Kong is currently advising the largest offshore RMB fund(RMB Opportunities fund) with above € 650mn of AuM
AZ Investment Management in Shanghai launched in April 2012 the first mutual fund (Cash Plus) advised bya wholly owned foreign enterprise in Mainland China, replicating the strategy of the RMB Opportunitiesfund but for onshore clients
Ongoing screening of potential opportunities in South America
Launched a number of new products before the summer, among which Global Currencies & Rates,demonstrating once again the capability to plan and deliver diversified product offerings
Achieved strong 1H12 results in volatile market conditions, on track to deliver solid 2H and FY 2012
Outlook
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1H12 Highlights
Asset Management
Distribution
1H12 Financials
Outlook
About Azimut
1H12 Results
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Azimut Group structure
Source: Company data as at 30/06/2012
100%
AZ IM(2011)
Azimut CM (2004)
Azimut Cons.(1988)
AZ Investimenti(2005)
AZ CM(2007)
Azimut Holding(Listed: AZM.IM)
Azimut Sgr(1986)
AZ Fund(1999)
AZ Life(2003)
Asset M
anagem
ent
Life
insurances
Distribution
IN Alternative (2007)
Azimut Fiduc.(2007)Tr
ustee
Apogeo Cons.(2008)
An Zhong (AZ) IM HK(2011)
An Zhong (AZ) IM(2011)
AZ International Holdings (2010)
65%
100%
100% 100%
100% 100% 20%
100%
100% 100% 100%
100%
100%
GAM Turkey (2011)
5%
60%
Global Securities(2011)
CGM (2011)
51%Katarsis CA(2011)
50%
Eskatos CM(2011)
100%
CGM SIM (2011)
100%
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Acquisition of Turkey’s Global Asset Management and Global Securities.
Acquisition of CGM, a Monaco‐based independent asset management company.
Acquisition of Swiss company Katarsis Capital Advisors and its Luxembourg subsidiary Eskatos Capital Management. Eskatos is one of the 3/5 companies managing ILS (Insurance Linked Securities) funds domiciled in the EU.
Azimut and Siqurgest launch an asset management and distribution partnership in Switzerland targeting HNWI and Institutional clients.
Azimut and CMT launch An Zhong Investment Management in Hong Kong and Shanghai specializing in asset management and investment advisory
Azimut enters the Venture Capital sector with Earlybird for the launch of a closed end fund dedicated to qualified investors with the objective of investing in Italian start‐up companies active in the technology sector
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Azimut current presence
Azimut potential expansion
Aiming at covering all 3 macro areas (Americas, EMEA, Asia‐Pacific) and time zones while offering a 24 hour service to our clients
Where we are and where we want to be: 10% of AuM outside Italy by 2014
Going International
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Azimut’s partnership philosophy has beenimplemented also in China by involving the localpartners, CMT Holding (acronym for ChinaManagement Team), in the shareholding of the newventure, aligning the interests of all stakeholders.
An Zhong (AZ) Investment Management in HongKong is the Holding company controlling twooperating subsidiaries. Azimut, through the Holdingcompany, oversees them and relocated three SeniorPMs from Luxembourg.
Through the operating subsidiaries Azimut aims atcreating a regional hub and developing localproduction and distribution of asset managementproducts and investment advisory services with afocus on qualified investors.
An Zhong (AZ) IM (2011)
AZ International Holdings
(2010)
65%
CMT Holding
(2011)
35%
100%
AZ Investment Management(2011)
An Zhong (AZ) IM HK(2011)
100%
2010: Definition of a frame agreement with local entrepreneurs/partners (CMT)
International expansion – China / HK
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Global Securities(Trading + Distribution)
60%
Global Yatirim
Holding
40%
5%
GAM Turkey(Asset management)
75%
On 14th March 2011 AZ International Holdings S.A.(“AIH”) signed a binding frame agreement withGlobal Yatirim Holding and Global Portfoy Yonetimi(“GAM”) to implement a partnership in the AMand distribution business in Turkey.
In particular, AIH has purchased 5% of thedistribution company’s share capital (GlobalMenkul Değerler) during its IPO on the IstanbulStock Exchange while Global Yatirim Holding holdsaround 75% of the capital.
Subsequently on 28th February 2012, through acapital increase, Azimut has completed theacquisition of 60% of the asset managementcompany’s share capital, Global Portföy.
Through a team of dedicated Azimut people,Global and Azimut are re‐structuring the productrange and creating a sales force focused on thedistribution of mutual funds in order to attractnew clients and AuM.
AZ International Holdings
(2010)
2011: Definition of a frame agreement with local entrepreneurs/partners (Global Investment Holdings)
International expansion – Turkey
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51% CGM
(Asset management)
On 10th May 2011 Azimut through its subsidiary AZInternational Holdings S.A. (“AIH”) signed a bindingframe agreement with CGM (Compagnie de Gestionprivée Monegasque); the acquisition of a 51% stakehas been completed on 30th December 2011
AuC of CGM stood at nearly €800m (o/w more than€600m AuM) – consideration of ~€ 15m (includingshareholders’ equity) paid entirely with treasuryshares
The partnership adds new competences to AzimutGroup targeting UHNWI also thanks to CGM’soperating subsidiary in Italy
Current CGM management entered Azimut’sshareholders’ agreement
CGM Italia SIM
100%
AZ International Holdings
(2010)
2011: Agreement for a 51% stake acquisition
International expansion – Monaco
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Promotori
Azimut Holding
1988: Azimut is established by Akros Finanziaria SpA
1990‐92: Pietro Giuliani and most of the current top management of Azimut join the company and startthe recruitment of top level professionals for the distribution network (organised in 6 regional companies)and the fund managers team.
AzimutPiemonte
1998: Bipop‐Carire acquires Azimut, which continues to operate independently
20%
80%
AzimutCentro‐sud
Azimut Liguria‐Toscana
Azimut Adriatica
Azimut Triveneto
Azimut Lombardia
20.0%
80.0%
20.0%
80.0%
20.0%
80.0%
20.0%
80.0%
20.0%
80.0%
20.0%
80.0%
December 2001: as a result of the Bipop restructuring, Azimut’s management buys‐out the business.Approximately 700 people invested in the MBO, completed by June 2002.
December 2002: The 6 regional distribution companies merged into Azimut Consulenza SIM
2004: Azimut’s IPO
Apax
Management and Promotori
Azimut Consulenza SIM
Azimut Holding
100.0%
65.0%
35.0%
Azimut’s pre‐IPO history
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Total shares issued: 143.3m
Source: Consob, July 2012
Free float breakdown
Timone Fiduciaria represents the shares of around1,200 individual shareholders (Promotori,employees, managers working for Azimut), tied upin a strong shareholders’ agreement.
Treasury shares: in excess of 7.5% of share capital
Azimut’s shareholder base
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A strong agreement for a long term commitment
Participants Promotori, employees and management organised in separate areas
Duration 3 years automatically renewed unless the absolute majority of thevoting rights refuses. Already renewed in 2007 and 2010
Share lock‐up 75% of each participant’s shares are locked until retirement,regardless of the tenure within the Group
The residual 25% can be sold at any time but subject to pre‐emptionright amongst other participants.
The price for this transfer is a 30 days rolling average.
Governance A share trust includes 100% of the voting rights of the participants.
A committee is responsible for managing and monitoring theparticipants’ obligations and rights under the agreement
Timone – the Shareholders agreement
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33Source: Company data as of 31/12/2011
Continuous growth throughout the decade, notwithstanding turbolent years
Main growth trend ‐ Clients, FAs and AuM
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Net inflows Performance
Note: Data in million €Includes managed assets only
AuM, Net Inflows and Performance
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35Source: Company data as of 30/06/2012
2008‐2012 A beta stock with a strong P&L
Solid financial performance (€mln)
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Disclaimer – Safe harbour statementThis 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, oron 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 andreasonable, the contents of this presentation have not been verified by independent auditors, or other third parties.
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 whatsoeverfor 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 statementsare 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 itsoperating 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. Noone 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. Thisdocument does not constitute an offer or invitation to purchase or subscribe for any shares and/or investment products mentioned and no part of it shall form the basis of or be reliedupon 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 theforegoing limitations.
Vittorio Pracca tel. +39.02.8898.5853
Gabriele Blei tel. +39.02.8898.5849
Email [email protected]
IR Website www.azfund.com
IR Contacts Upcoming events
8 November 2012: Board of Directors approval of 9M2012 results
Contacts & Corporate calendar
