Ashmore Group plc Final Results 12 months to 30 June 2012 11 - PowerPoint PPT Presentation

Ashmore Group plc Final Results 12 months to 30 June 2012 11 September 2012

Presentation team  Mark Coombs, Chief Executive Officer  Graeme Dell, Group Finance Director  Tom Shippey , Head of Corporate Development 1

Contents  Highlights  Emerging Markets Backdrop  Assets under Management  Progress Update  Financial Results  Strategy Update and Outlook  Appendices 2

Highlights  Final assets under management (“AuM”) of US$63.7 billion at 30 June 2012, a decrease of US$2.1 billion (3%) from US$65.8 billion at 30 June 2011  Total net revenue of £333.3 million, in line with FY2010/11 (£333.8 million) − Net management fees (1) up by 20% to £298.9 million − Performance fees down 70% to £25.4 million (FY2010/11: £85.4 million) − Foreign exchange gain £2.8 million (FY2010/11: £7.4 million loss)  EBITDA margin of 71% (FY2010/11: 73%)  Profit before tax of £243.2 million, a decrease of 1% from FY2010/11 (£245.9 million)  Basic earnings per share of 26.82p (FY2010/11: 28.08p)  10.75p final dividend, making a full year dividend of 15.00p (FY2010/11: 14.50p) …satisfactory financial performance 3 Note: (1) Net of distribution costs and fee rebates, but before net management fee hedging gains/(losses).

Emerging Markets Backdrop Testing markets in 2011/12 Fixed income: mixed fortunes 1  Continued volatility in 2011/12 120 — Dollar strength contributing to negative local +10% 110 currency and positive hard currency +6% Index value performance 100 — MSCI EM Index down c.16% -7% 90  Developed world macro issues drove sentiment 80 30-Jun-11 30-Sep-11 31-Dec-11 31-Mar-12 30-Jun-12 — Euro debt crisis JPM ELMI + JPM EMBI GD JPM CEMBI BD — US debt ceiling Equities: MSCI EM Index fell c.16% — Continued de-leveraging 500  Reduction in global GDP growth 440.8 460 — EM growth impacted but resilient Index value 420  EM fundamentals intact 372.1 380 — Growth rates remain high 340 — Fiscal strength — EM share of global economy increasing 300 30-Jun-11 30-Sep-11 31-Dec-11 31-Mar-12 30-Jun-12  New opportunities as markets broaden / deepen Note: (1): All indices rebased to 100 …EM fundamentals remain intact Sources: MSCI, JPM Indices 4

Emerging Markets Backdrop EM Fixed Income High issuance levels, particularly corporate  EM debt now well established allocation 250 210 — No longer just a “risk-on” trade 188 200 153 US$ Billions 137  150 Investable universe continues to grow 121 93 88 84 100 83 80 76 — EM debt stock now c.US$8 trillion (Total 74 71 70 59 57 58 55 50 39 Global Corporate and Sovereign debt 50 28 23 21 10 c.US$55 trillion) 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011  Issuance levels higher than pre-crisis EM USD Sovereign EM USD Corporate — Record levels of corporate issuance EM Sovereign debt has shown a steady improvement in credit quality  Improving EM credit quality recognised — 182 EM sovereign upgrades since crisis — 8 triple A rated DM countries downgraded  Potential for strong returns — Yield and relative valuations — Attractive spreads vs. treasuries  Continued flows into EM fixed income NR B BB IG — More diversified investment opportunities …attractions reinforced and increasingly accepted Sources: JP Morgan 5

Emerging Markets Backdrop EM Equities Price to 12 months forward earnings  Global headwinds have impacted expected 5% Relative Valuation MSCI EM Index growth 0% vs. MSCI World Index -5%  Valuations attractive vs. historic levels -10% — EM p/e at significant discount -15% EM discount to DM at -20% widest level since 2008  Capital markets deepening and broadening crisis began -25% providing greater opportunity range -30%  Investors increasingly looking at specialist areas — Country / regional Emerging Markets vs. Developed markets market capitalisation — Frontier markets Market Capitalisation (US$ Trillions) 45 30% — Small caps 40 25% 35  However, industry flows in 2011 negative EM proportion(%) 30 20% 25  15% Institutional allocations to increase 20 15 10%  Secular growth story intact 10 5% 5 0 0% End 1990 End 1995 End 2000 End 2005 End 2010 Developed Markets Emerging Markets EM in MSCI ACWI Index (RHS) EM weighting in global Market Capitalisation (RHS) Sources: MSCI, Bloomberg, World federation of exchanges …difficult year, but strong investment case 6

Emerging Markets Backdrop EM Outlook Emerging Markets to continue to be the driver of global GDP growth  EM GDP growth rates exceed DM GDP Growth (PPP-weighted) % 7  6 Combined EM GDP exceeds 50% on a PPP basis 5 4  Transition from export led to domestic consumption 3 — Infrastructure spending to rise 2 1 — Development of domestic corporate bond 0 -1 markets -2 1980-89 1990-99 2000-09 2010-19E — Structural reforms Asia LatAm CEE Africa MENA N. America Europe  Country balance sheets strengthening Emerging Markets have strengthened their fiscal — Stimulus tools available if necessary position — Inflation pressures controllable 6 Change in government debt June 2011-12 (% of GDP)  Data showing some signs of improvement 4 5.9  China 2 3.7 0.5 — Executing 5 year strategic plan 0 -1.2 -1.2 -1.1 -0.5 -1.8 — Market over bearish -3.4 -3.8 -2  Near term risks -4 — Political / regime change — US fiscal cliff — Eurozone tail risks in 2013 …EM macro supports substantial size of opportunity Sources: IMF, JP Morgan, GS Global ECS Research, Economist 7

Assets under Management Overview Assets under Management (US$bn) Key Highlights  AuM decreased by US$2.1bn to US$63.7bn, 70 65.8 63.7 down 3% 60  Good levels of gross subscriptions of US$13.0bn 50 (FY2010/11: US$23.0bn)  Positive net flows of US$1.3bn 40 37.5 35.3 31.6  US$(3.4)bn of negative performance 30 24.9  Average AuM increased by US$17.5bn (38%) 20.1 20 11.0 10 5.9 0 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 External debt Local currency Corporate debt Blended debt Equities Alternatives Multi strategy Overlay / liquidity …business scale and diversification maintained through AuM resilience 8

Assets under Management Subscriptions and redemptions FY2011/12 AuM Development (US$bn) Redemptions as a % Average AuM by Year 90 41% 13.0 (11.7) 80 US$11.3bn 70 (3.4) 60 50 US$ bn 20% 40 18% 16% US$7.1bn 65.8 63.7 US$11.7bn 30 12% US$7.5bn US$3.7bn 20 10 0 AuM at June Subscriptions Redemptions Performance AuM at June Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 2011 2012 …acceptable asset retention during a period of market volatility 9

Assets under Management Subscriptions and redemptions H1 2011/12 AuM Development (US$bn) H2 2011/12 AuM Development (US$bn) 74 74 72 72 70 70 US$ bn US$ bn 68 68 66 66 64 64 62 62 60 60 65.8 63.7 60.4 60.4 58 58 AuM at June SubscriptionsRedemptions Positive Negative AuM at Dec AuM at Dec SubscriptionsRedemptions Positive Negative AuM at June 2011 performance performance 2011 2011 performance performance 2012 External debt Local currency Corporate debt Blended debt Equities Alternatives Multi-strat Overlay/Liquidity …positive net flows delivered in both halves 10

Assets under Management Investment Performance Funds Outperforming vs Funds Outperforming vs Funds Outperforming vs Benchmark – Gross 1 Year 1 Benchmark – Gross 3 Years 1 Benchmark – Gross 5 Year 1 100% 100% 100% 80% 80% 80% 60% 60% 60% 40% 40% 40% 20% 20% 20% 0% 0% 0% External Local Corporate Blended Equities Total External Local Corporate Blended Equity Total External Local Blended Equities Total Debt Currency Debt Debt Debt Currency Debt Debt Debt Currency Debt Underperformance Outperformance …strong long term track record S ources: Ashmore (un-audit ed). S ource benchmarks: Bloomberg, HS BC, JP Morgan and Morgan S t anley Not e. (1) All f unds and segregat ed account s (excluding special sit uat ions, mult i-st rat egy and passively managed f unds) wit h a benchmark as at 30-Jun-12 (1 year: 21 f unds; 3 years: 32 f unds; 5 years: 21 f unds) (b) S ICAV inst it ut ional US D share classes have been used as represent at ive perf ormance f or mult i-share class S ICAV f unds; (c) One year perf ormance is t he 12 mont h period ending 30-Jun-12; Annualised t hree year perf ormance is t he 36 mont h period ending 30-Jun-12; (2) All f und perf ormance gross wit h t he except ion of one f und which is net . 11

Assets under Management Investment Performance Ashmore Local Currency (Broad) Composite Ashmore External Debt (Broad) Composite 12 20 8 15 4 Return (%) 10 Return (%) 0 5 -4 0 -8 -5 -12 1 yr (%) 3 yrs (% pa) 5 yrs (% pa) 10 yrs (% pa) 1 yr (%) 3 yrs (% pa) 5 yrs (% pa) 7 yrs (% pa) Ashmore Corporate Debt (Broad) Composite Ashmore Global EM Equities Composite 25 30 20 20 15 10 Return (%) Return (%) 10 0 5 -10 0 -20 -5 -10 -30 1 yr (%) 3 yrs (% pa) 5 yrs (% pa) 10 yrs (% pa) 1 yr (%) 3 yrs (% pa) 5 th percentile Upper quartile Median Lower quartile Ashmore Composite performance Benchmark Index …strong long-term debt track record demonstrated 12