AMVESCAP Reports for Year Ended December 31, 2005; Company Building Renewed Business Momentum.LONDON London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. -- AMVESCAP (NYSE NYSE See: New York Stock Exchange :AVZ)(LSE LSE - Language Sensitive Editor :AVZ)(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AVZ) reported that profit before tax for the 2005 year amounted to $360.1 million (2004: $39.0 million). The results for 2005 include a $75.7 million restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , and the 2004 results included a charge of $413.2 million representing the U.S. regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. settlement, collectively referred to as "the Adjustment" or "the Adjustments". Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for 2005 amounted to $424.6 million (2004: $87.3 million). Operating profit before the Adjustments for 2005 amounted to $500.3 million (2004: $500.5 million). Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of before the Adjustments was $0.34 for 2005 (2004: $0.35). (NYSE:AVZ). "Our work during the past months has laid a strong foundation for success in 2006," said AMVESCAP president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Martin L. Flanagan Flanagan may refer to: People named:
v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. business momentum by taking advantage of AMVESCAP's inherent global strengths, simplifying our operating platform, and with our recently announced combination with PowerShares, creating a unique industry product line featuring both actively managed mutual funds and distinctive ETFs." "Our restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). actions will allow AMVESCAP to reduce costs by operating more efficiently and effectively," added Mr. Flanagan. "Assuming a continuation continuation - continuation passing style of the current business environment, the actions we are taking should allow us to reduce 2006 operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $120 million."
Results for Year Results before the
Ended Adjustments for the
December 31, Year Ended December
31,
--------------------- ---------------------
2005 2004(a) 2005 2004(a)
---------- ---------- ---------- ----------
Net Revenues $2,173.2m $2,124.5m $2,173.2m $2,124.5m
Operating expenses $1,748.7m $2,037.1m $1,673.0m $1,623.9m
Operating profit $424.6m $87.3m $500.3m $500.5m
Net operating margin(b) 19.5% 4.1% 23.0% 23.6%
Profit before tax $360.1m $39.0m $435.8m $452.2m
Earnings per share:
--basic $0.27 $(0.05) $0.34 $0.35
--diluted $0.26 $(0.05) $0.34 $0.35
----------------------------------------------------------------------
(a) 2004 results have been restated to reflect the transition from U.K. Generally Accepted Accounting Practice ("U.K. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") to International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). ("IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System ") and have been translated into U.S dollars, the presentation currency of AMVESCAP. See Note 10 for reconciliations of AMVESCAP's U.K. GAAP results to IFRS. (b) Net operating margin Net operating margin The ratio of net operating income to net sales. is equal to Operating profit divided by Net revenues. Quarterly Earnings Summary AMVESCAP's fourth quarter of 2005 includes the Adjustment of $75.7 million ($58.3 million after tax, or $0.07 per share), which was recorded as part of the operating review that the company has been implementing across all business units. The Adjustment includes staff termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. , property, and fund rationalization rationalization, in psychology: see defense mechanism. costs. See Note 7 for additional details. Also during the fourth quarter, AMVESCAP redenominated its share capital and changed its presentation currency from sterling to U.S. dollars. See Note 3 for further information. Net revenues (total revenues less third-party distribution, service and advisory fees) for the three months ended December December: see month. 31, 2005, were $551.4 million (3rd quarter 2005: $536.2 million). As required under IFRS, third-party distribution, service and advisory fees are now presented separately from total revenues on the income statement. Operating expenses before the Adjustment totaled $427.3 million for the fourth quarter of 2005 (3rd quarter 2005: $423.2 million). Included within General and Administrative expenses during the fourth quarter of 2005 is a non-cash goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $16.6 million ($10.4 million after tax, or $0.01 per share) related to the Atlantic Trust business. See the supplemental schedule included in this earnings release for additional information. The net operating margin before the Adjustment for the three months ended December 31, 2005 was 22.5% (3rd quarter 2005: 21.1%). Profit before tax and the Adjustments for the three months ended December 31, 2005 amounted to $94.3 million, compared to $119.1 million in the third quarter of 2005. Included in Other (loss)/income for the fourth quarter of 2005 is an $11.3 million expense associated with a capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. into our Taiwan Taiwan (tī`wän`), Portuguese Formosa, officially Republic of China, island nation (2005 est. pop. 22,894,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan bond funds. In addition, we incurred a non-cash loss of $6.8 million related to the foreign exchange revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of our senior notes into sterling. This loss was recorded pursuant to our adoption of International Accounting Standard ("IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. ") 39, "Financial Instruments: Recognition and Measurement", as discussed in Note 2, before the redenomination Redenomination The process of changing the currency value on a financial security. Notes: A great example is when the denomination on many European securities needed to be changed to the Euro. See also: Currency from sterling to U.S. dollars. See the supplemental schedule included in this earnings release for additional information regarding these charges. Diluted earnings per share before the Adjustments amounted to $0.07 for the three months ended December 31, 2005 (2004: $0.09). Annual Earnings Summary Net revenues for 2005 were $2,173.2 million (2004: $2,124.5 million). Operating expenses before the Adjustments totaled $1,673.0 million for 2005 (2004: $1,623.9 million). In addition to the impairment charge noted previously, operating expenses for 2005 include several charges relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc continuing reviews of the business. Included in Property and Office expenses in the third quarter are onerous on·er·ous adj. 1. Troublesome or oppressive; burdensome. See Synonyms at burdensome. 2. Law Entailing obligations that exceed advantages. lease charges of $11.4 million related to the finalization Writing the table of contents (TOC) on a recordable CD or DVD disc. The finalization process ensures that the disc can be played back on most CD and DVD players. See disc-at-once. of sub-lease arrangements that were originally estimated and expensed in a $37.0 million charge in the third quarter of 2004. Also in the third quarter is an $11.8 million recruitment recruitment /re·cruit·ment/ (re-krldbomact´ment) 1. the gradual increase to a maximum in a reflex when a stimulus of unaltered intensity is prolonged. 2. charge, recorded in Compensation expenses. Additionally, the outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. of the German banking operation and pending sale of the banking license resulted in a charge of $4.7 million included within Compensation expenses in the third quarter. See the supplemental schedule included in this earnings release for additional information regarding these charges. The net operating margin before the Adjustments for 2005 was 23.0% (2004: 23.6%). Profit before tax and the Adjustments for 2005 amounted to $435.8 million (2004: $452.2 million). We recorded a $32.6 million gain from the sale of the AMVESCAP Retirement business in the third quarter, offset by a charge related to the outsourcing of the defined contribution platform in the U.K. of $7.2 million. Fourth quarter charges relating to the capital infusion into the Taiwan bond funds and the foreign exchange loss also contributed to Other (loss)/income during the year. See the supplemental schedule included in this earnings release for additional information regarding these items. Diluted earnings per share before the Adjustments amounted to $0.34 for the year ended December 31, 2005 (2004: $0.35). Dividends The Board has recommended a final dividend for 2005 of 5.5p per share, approximately $0.10 per share at an exchange rate of $1.74 per GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.00 (2004: 5.0p per share), resulting in a total dividend of 9.5p per share for 2005 (2004: 7.5p). The final dividend, if approved by shareholders at the Annual General Meeting on April 27, 2006, will be paid on May 4, 2006, to shareholders on the register as of March 31, 2006. The ex-dividend date Ex-dividend date The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment ( i.e. the trade will settle the day after the record date, too late for the buyer to appear on the shareholder record and receive the dividend. will be March 29, 2006. Future dividends will be declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. in U.S. dollars. Assets Under Management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. Assets under management at the end of 2005 were $386.3 billion (2004: $382.1 billion). Average assets under management during the fourth quarter were $380.9 billion, compared to $378.1 billion for the preceding quarter and $374.0 billion for the fourth quarter of 2004. Average assets under management for 2005 were $377.6 billion, compared to $371.3 billion in 2004. Net outflows for the year ended December 31, 2005, were $16.2 billion, with sales of $66.3 billion and redemptions of $82.5 billion. For the fourth quarter of 2005, net outflows were $3.7 billion, with sales of $15.8 billion and redemptions of $19.5 billion. Fourth quarter 2005 net outflows included the loss of a $1.4 billion sub-advised client in our U.S. Retail channel. Additional analysis of assets under management is included in the supplemental schedules in this earnings release. Transition to IFRS Effective January January: see month. 1, 2005, AMVESCAP began recording its results of operations under IFRS. The comparative period has been restated to apply these IFRS on a consistent basis. Prior to this date, AMVESCAP prepared its consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge under U.K. GAAP. The most significant changes affecting AMVESCAP's financial reporting due to the IFRS transition are: --The cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of goodwill amortization (IFRS 3) and redenomination of goodwill into the currency of the underlying acquired entities (IAS 21); --The inclusion of a fair value charge in respect of outstanding employee share options granted after November November: see month. 7, 2002 (IFRS 2); --The replacement of existing charges for awards under certain equity-based compensation plans with fair value charges spread over revised time periods (IFRS 2); --The inclusion in the balance sheet of all employee benefit liabilities (IAS 19); and --The reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of certain income statement and balance sheet items for disclosure purposes, including the presentation of third-party distribution fees, service fees and advisory fees in the income statement separately from total revenues. The underlying business transactions and cashflows of AMVESCAP did not change upon the transition to IFRS. The transition to IFRS resulted in the reduction of total shareholders' funds from the U.K. GAAP figure at January 1, 2004 (transition date) of $208 million. This reduction is due primarily to the redenomination of goodwill and management contract intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. into the currency of the underlying acquired entities. Under U.K. GAAP, these balances were recorded in pounds sterling. For the year ended December 31, 2004, the transition to IFRS resulted in the addition of $276 million to profit for the year, primarily due to the cessation of goodwill amortization previously recorded under U.K. GAAP. Diluted earnings per share for the year ended December 31, 2004 was a loss of $0.05 under IFRS, compared with a loss of $0.39 under U.K. GAAP. See Note 10 for further details. AMVESCAP's first Annual Report under IFRS will be for the year ended December 31, 2005 and is expected to be sent to shareholders in March, 2006. AMVESCAP is a leading independent global investment manager dedicated to helping people worldwide build their financial security. Operating under the AIM, INVESCO INVESCO, (NYSE: IVZ) is an investment management company based in London, England, UK. It is quoted on the London Stock Exchange and is a member of the FTSE 100 Index. It has branches in 19 countries, but more than half of its business is in the United States. , AIM Trimark, INVESCO Perpetual Invesco Perpetual is an investment company based in Henley-on-Thames, Oxfordshire, England. It was originally founded as by Sir Martyn Arbib and before it merged with Invesco it was known first as Perpetual Mutual then as Perpetual plc. and Atlantic Trust brands, AMVESCAP strives to deliver outstanding products and services through a comprehensive array of retail and institutional investment solutions for clients around the world. The Company is listed on the London, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. with the symbol "AVZ." Additional information is available at www.amvescap.com. Members of the investment community and general public are invited to listen to the conference call today, Tuesday Tuesday: see week. , February February: see month. 7, 2006, at 2:00 p.m. GMT (Greenwich Mean Time) See UTC. GMT - Universal Time 1 (9:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy ), by dialing one of the following numbers: 1-773-756-0108 or 1-888-455-2053 for U.S. callers. An audio replay of the conference call will be available until Tuesday, February 14, 2006, at 10:00 p.m. GMT (5:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. ) by calling 1-203-369-1038 or 1-866-436-9392 for U.S. callers. The presentation slides that will be reviewed during the conference call will be available on AMVESCAP's Web site at www.amvescap.com. # # # This release may include statements that constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " under the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. securities laws. Forward-looking statements include information concerning possible or assumed future results of our operations, earnings, liquidity, cash flow and capital expenditures, industry or market conditions, assets under management, acquisition activities and the effect of completed acquisitions, debt levels and the ability to obtain additional financing or make payments on our debt, regulatory developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, when used in this release, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects" and future or conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. verbs such as "will," "may," "could," "should," and "would" and any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, you should carefully consider the areas of risk described in our most recent Annual Report on Form 20-F, as filed with the United States Securities and Exchange Commission ("SEC"). You may obtain these reports from the SEC's Web site at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . AMVESCAP PLC Consolidated Income Statement consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. (Unaudited, in thousands other than per share amounts)
Year Ended Dec 31,
-----------------------
2005 2004 % Change
----------- ----------- ---------
Revenues:
Management $2,213,650 $2,052,664 7.8%
Service and distribution 538,210 593,265 (9.3)%
Other 127,358 111,562 14.2%
----------- -----------
Total revenues 2,879,218 2,757,491 4.4%
Third-party distribution, service
and advisory fees (705,981) (633,030) 11.5%
----------- -----------
Net Revenues 2,173,237 2,124,461 2.3%
----------- -----------
Operating expenses:
Compensation (1,044,706) (966,788) 8.1%
Marketing (139,560) (129,098) 8.1%
Property and office (130,294) (169,290) (23.0)%
Technology/telecommunications (138,966) (148,709) (6.6)%
General and administrative (219,462) (210,040) 4.5%
Restructuring charge (75,690) -- N/A
U.S. regulatory settlement -- (413,211) (100.0)%
----------- -----------
Total operating expenses (1,748,678) (2,037,136) (14.2)%
----------- -----------
Operating profit 424,559 87,325 386.2%
Gain on sale of business 32,626 11,831 175.8%
Other (loss)/income (11,965) 21,044 N/A
Interest expense (85,142) (81,171) 4.9%
----------- -----------
Profit before taxation 360,078 39,029 822.6%
Taxation - U.K. (18,013) (2,391) 653.4%
Taxation - overseas (128,677) (72,297) 78.0%
----------- -----------
Profit/(loss) after taxation 213,388 (35,659) N/A
Minority interests (1,148) (536) 114.2%
----------- -----------
Profit/(loss) for the period
attributable to equity holders of
the parent $212,240 $(36,195) N/A
=========== ===========
Earnings per share -- basic $0.27 $(0.05)
--diluted $0.26 $(0.05)
Earnings per share before
restructuring charge (2005) and U.S.
regulatory settlement (2004), basic
and diluted $0.34 $0.35
Dividends paid
Final dividend proposed per share $134,118 $135,681
(pence) 5.5p 5.0p
Final dividend proposed $78,471 $78,645
AMVESCAP PLC Consolidated Income Statement (Unaudited, in thousands other than per share amounts)
Q405 Q305 % Change
--------- --------- ---------
Revenues:
Management $573,674 $555,715 3.2%
Service and distribution 129,330 125,895 2.7%
Other 31,676 35,016 (9.5)%
--------- ---------
Total revenues 734,680 716,626 2.5%
Third-party distribution, service and
advisory fees (183,238) (180,383) 1.6%
--------- ---------
Net revenues 551,442 536,243 2.8%
--------- ---------
Operating expenses:
Compensation (263,434) (267,308) (1.4)%
Marketing (33,638) (28,169) 19.4%
Property and office (26,866) (40,953) (34.4)%
Technology/telecommunications (31,581) (33,464) (5.6)%
General and administrative (71,814) (53,287) 34.8%
Restructuring charge (75,690) -- N/A
--------- ---------
Total operating expenses (503,023) (423,181) 18.9%
--------- ---------
Operating profit 48,419 113,062 (57.2)%
Gain on sale of business -- 32,626 (100.0)%
Other(loss)/income (9,304) (6,557) N/A
Interest expense (20,511) (20,063) 2.2%
--------- ---------
Profit before taxation 18,604 119,068 (84.4)%
Taxation (23,376) (43,778) (46.6)%
--------- ---------
(Loss)/profit after taxation (4,772) 75,290 N/A
Minority interests (256) (370) (30.8)%
--------- ---------
(Loss)/profit for the period
attributable to equity holders of the
parent ($5,028) $74,920 N/A
========= =========
Earnings per share, basic and diluted ($0.01) $0.09
Earnings per share before restructuring
charge, basic and diluted $0.07 $0.09
Average shares outstanding:
---basic 794,511 794,052
---diluted 810,134 807,516
Q205 Q105 Q404
--------- --------- ---------
Revenues:
Management $542,479 $541,782 $533,835
Service and distribution 140,530 142,455 154,944
Other 34,804 25,862 41,529
--------- --------- ---------
Total revenues 717,813 710,099 730,308
Third-party distribution, service and
advisory fees (170,020) (172,340) (164,955)
--------- --------- ---------
Net revenues 547,793 537,759 565,353
--------- --------- ---------
Operating expenses:
Compensation (259,081) (254,883) (257,139)
Marketing (38,166) (39,587) (29,945)
Property and office (31,118) (31,357) (34,551)
Technology/telecommunications (36,934) (36,987) (34,762)
General and administrative (48,580) (45,781) (70,421)
Restructuring charge -- -- --
--------- --------- ---------
Total operating expenses (413,879) (408,595) (426,818)
--------- --------- ---------
Operating profit 133,914 129,164 138,535
Gain on sale of business -- -- --
Other(loss)/income 1,229 2,667 8,216
Interest expense (23,579) (20,989) (26,839)
--------- --------- ---------
Profit before taxation 111,564 110,842 119,912
Taxation (39,919) (39,617) (49,686)
--------- --------- ---------
(Loss)/profit after taxation 71,645 71,225 70,226
Minority interests (376) (146) (443)
--------- --------- ---------
(Loss)/profit for the period attributable
to equity holders of the parent $71,269 $71,079 $69,783
========= ========= =========
Earnings per share, basic and diluted $0.09 $0.09 $0.09
Earnings per share before restructuring
charge, basic and diluted $0.09 $0.09 $0.09
Average shares outstanding:
---basic 793,822 793,434 797,641
---diluted 801,164 800,668 800,753
AMVESCAP PLC Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (Unaudited, in thousands)
Dec 31, Dec 31,
2005 2004
----------- -----------
Non-current assets
Goodwill $4,213,648 $4,317,391
Intangible assets 98,971 129,869
Property and equipment 180,044 226,987
Deferred sales commissions 78,944 110,982
Deferred tax assets 150,600 150,114
Investments 149,410 134,478
----------- -----------
4,871,617 5,069,821
Current assets
Trade and other receivables 749,181 844,358
Investments 1,202,076 958,524
Cash and cash equivalents 754,754 546,928
----------- -----------
2,706,011 2,349,810
Total assets 7,577,628 7,419,631
Current liabilities
Current maturities of long-term debt (10,106) (79,476)
Trade and other payables (2,461,006) (2,218,862)
Provisions (52,108) (28,449)
----------- -----------
(2,523,220) (2,326,787)
Net current assets 182,791 23,023
Non-current liabilities
Long-term debt (1,212,130) (1,302,168)
Deferred tax liabilities (43,496) (36,655)
Provisions (182,479) (211,054)
----------- -----------
Total liabilities (3,961,325) (3,876,664)
Net assets $3,616,303 $3,542,967
=========== ===========
Equity
Share capital $81,811 $388,953
Share premium 84,968 1,345,143
Shares held by employee trusts (413,473) (456,717)
Exchangeable shares 431,778 593,025
Retained earnings 638,739 571,574
Other reserves 2,789,187 1,098,468
----------- -----------
Equity attributable to equity holders of
the parent 3,613,010 3,540,446
Minority interests 3,293 2,521
----------- -----------
Total equity $3,616,303 $3,542,967
=========== ===========
AMVESCAP PLC Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statement of Changes in Equity (Unaudited, in thousands)
2005
-------------------
January 1, 2005 $3,542,967
Adoption of IAS 32/39 at January 1, 2005 29,100
Profit after taxation 213,388
Currency translation differences on
investments in overseas subsidiaries (111,029)
-------------------
Total equity before transactions with owners 3,674,426
Dividends (134,118)
Exercise of options 7,720
Acquisition earn-out 2,193
Gains on available-for-sale assets 5,371
Tax impact of equity transactions 8,151
Increase in share-based payment reserve 52,560
-------------------
December 31, 2005 $3,616,303
-------------------
AMVESCAP PLC Consolidated Cash Flow Statement (Unaudited, in thousands)
Year Ended Dec 31,
------------------------
2005 2004
------------- ---------
Operating profit $424,559 $87,325
Amortization and depreciation 94,463 92,522
Interest paid, net of investment income (86,232) (59,388)
Taxation (118,789) (133,113)
Change in other assets and liabilities 155,109 216,570
------------- ---------
Net cash inflow from operating activities 469,110 203,916
Investing activities:
Capital expenditures, net of sales (35,995) (50,583)
Disposal/(purchase) of long-term investments,
net 13,252 (2,511)
Dispositions and acquisitions 53,640 (53,884)
------------- ---------
Net cash inflow/(outflow) from investing
activities 30,897 (106,978)
Financing:
Dividends paid (134,118) (138,207)
Net repayment of debt (160,476) 100,476
Other financing 7,719 (87,489)
------------- ---------
Net cash outflow from financing activities (286,875) (125,220)
Increase/(decrease) in cash and cash
equivalents 213,132 (28,282)
Foreign exchange (5,306) 11,884
Cash and cash equivalents, beginning of period 546,928 563,326
------------- ---------
Cash and cash equivalents, end of period $754,754 $546,928
============= =========
Notes 1. Accounting policies The accounting policies used in the preparation of this earnings release follow IFRS in effect as of the date of this release. The comparative period has been restated to apply these IFRS on a consistent basis (see Note 10). The most significant changes due to the IFRS transition are: --The cessation of goodwill amortization (IFRS 3) and redenomination of goodwill into the currency of the underlying acquired entities (IAS 21); --The inclusion of a fair value charge in respect of outstanding employee share options granted after November 7, 2002 (IFRS 2); --The replacement of existing charges for awards under certain equity-based compensation plans with fair value charges spread over revised time periods (IFRS 2); --The inclusion in the balance sheet of all employee benefit liabilities (IAS 19); and --The reclassification of certain income statement and balance sheet items for disclosure purposes, including the presentation of third-party distribution fees, service fees and advisory fees in the income statement separately from total revenues. AMVESCAP's first Annual Report under IFRS will be for the year ended December 31, 2005, and is expected to be sent to shareholders in March 2006. The accounting policies applied to the information in this earnings release are consistent with those that will be applied in the 2005 Annual Report. Please refer to www.amvescap.com for a more detailed discussion of these policies. 2. Adoption of accounting standards AMVESCAP has adopted IAS 32, "Financial Instruments: Disclosure and Presentation" and IAS 39, "Financial Instruments: Recognition and Measurement" as of January 1, 2005. These standards require that financial assets Financial assets Claims on real assets. and liabilities be recognized on the balance sheet and accounted for according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. their underlying classification. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. increased by $29.1 million as a result of these changes primarily arising from the recognition of net unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on investments classified as available for sale. Also as a result of the adoption of IAS 39, a charge of $6.8 million was recorded into Other (loss)/income during 2005. This charge was the result of foreign exchange revaluation of the U.S. dollar senior notes into sterling, and was recorded before the change in foreign currency from sterling to U.S. dollars (discussed in Note 3). 3. Presentation Currency AMVESCAP PLC redenominated its share capital and changed its presentation currency from sterling to U.S. dollars on December 8, 2005. The balance sheet information presented in this earnings release has been translated to U.S. dollars using the exchange rates at the balance sheet dates. The income statements and cash flows have been translated at the average rates for each period presented. The U.S. dollar to sterling rates used are as follows:
2005 2004
---------------- ----------------
Average:
1st Quarter $1.88 $1.83
2nd Quarter $1.85 $1.81
3rd Quarter $1.76 $1.81
4th Quarter $1.74 $1.89
Ending:
December 31 $1.74 $1.92
4. Taxation A significant proportion of the tax charge arose from U.S. and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. operations. The effective tax rate is 40.7% in 2005 (37.7% before the restructuring charge) and 191.4% in 2004 (37.5% before the U.S. regulatory settlement). 5. Earnings per share Basic earnings per share is based on the weighted average number of ordinary and exchangeable shares outstanding during the respective periods, excluding shares purchased and held by employee share ownership trusts. Diluted earnings per share takes into account the effect of the potential issuance of ordinary shares.
2005
------------------------------
in thousands other than per share Profit for Number of Per
amounts the period shares share
Amount
----------- ---------- -------
Basic earnings per share $212,240 793,958 $0.27
=======
Dilutive effect of share-based awards -- 11,105
----------- ----------
Diluted earnings per share $212,240 805,063 $0.26
----------- ---------- =======
2004
--------------------------------
Loss for the Number of Per
period shares share
Amount
------------ ---------- --------
Basic and diluted earnings per share $(36,195) 802,160 $(0.05)
------------ ---------- ========
6. Acquisitions and dispositions On July July: see month. 15, 2005, AMVESCAP completed the disposal of the AMVESCAP Retirement business. The results of this business are included through the closing date of the transaction. A gain of $32.6 million has been recorded within other income. Revenues of $33.5 million were derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. by the AMVESCAP Retirement business in 2005 through the date of disposal. The disposal is analyzed an·a·lyze tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3. as follows:
$ thousands
Total net assets 23,460
Gain on disposal 32,626
------------------
Cash consideration 56,086
In December 2005, AMVESCAP outsourced Outsourced is a modern day comedy of cross-cultural conflict and romance, directed by John Jeffcoat, released in 2007. Synopsis Todd Anderson (Josh Hamilton) spends his days managing a customer call center for American Novelty Products in Seattle, until his job, its banking operations in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). and, on January 31, 2006, completed the sale of its German banking license. Net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. at December 31, 2005 were $7.1 million. For the year ended December 31, 2005 the German bank recorded revenues of $14.4 million. On January 23, 2006 AMVESCAP announced the acquisition of PowerShares Capital Management LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("PowerShares"). The transaction, subject to certain conditions including approvals from the Board of Directors and the shareholders of PowerShares, is expected to close in the second or third quarter of 2006. The initial purchase consideration is $60 million to be paid on closing. Additional consideration of up to a maximum of $670 million is payable in the future depending on the achievement of various revenue and assets under management growth targets being reached. 7. Restructuring charge and U.S. regulatory settlement The consolidated net income statement for 2005 includes a restructuring charge of $75.7 million. The charge relates to operational and structural charges made in 2005 as a result of a review of the business. The charge is comprised of the following:
$ millions
Staff termination costs 45.1
Property costs 20.4
Fund rationalization costs 6.9
Other 3.3
------------
Total restructuring charge 75.7
------------
Taxation (17.4)
------------
Net income charge 58.3
------------
Per share impact $0.07
------------
The consolidated income statement for 2004 includes a charge of $413.2 million ($318.2 million after tax, or $0.39 per share) relating to the mutual fund market timing investigations by regulators in the United States. The charge comprised settlement payments and civil penalties of $376.7 million, along with related costs of $36.5 million, primarily additional legal costs associated with the investigations. Previously, when reporting under U.K. GAAP, the settlement was included in exceptional items totaling $450.3 million. The exceptional items, as reported in 2004, also included $37.0 million primarily relating to estimates of lease payments in excess of the expected sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. proceeds over the remaining lives of the leases. These amounts have been reclassified into operating expenses. 8. Dividends A final dividend in respect of 2005 of 5.5p per share (approximately $0.10 per share, or $78.5 million, at an exchange rate of $1.74 per GBP 1.00: $76.3 million for ordinary shares and $2.2 million for exchangeable shares) has been proposed by the Board and will be paid, subject to shareholder approval, in May 2006. The dividend will be accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. when approved by shareholders. A final dividend in respect of 2004 of 5.0p per share ($0.09 per share, or $75.0 million, at an exchange rate of $1.83: $72.4 million for ordinary shares and $2.6 million for exchangeable shares) was approved at the Annual General Meeting of Shareholders on April 28, 2005, and charged to retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. at that time. This dividend was paid on May 4, 2005, to shareholders on the register on April 1, 2005. An interim 2005 dividend of 4.0p per share (2004: 2.5p) ($0.07 per share, or $59.1 million, at an exchange rate of $1.79: $57.1 million for ordinary shares and $2.0 million for exchangeable shares) was declared by the Board of Directors on August 2, 2005, and was paid on October October: see month. 12, 2005 to shareholders on the register on September September: see month. 9, 2005. 9. Credit facility On March 31, 2005, AMVESCAP entered into a new five-year credit agreement ("credit facility") with a group of lenders, providing a revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility in an aggregate principal amount of up to $900 million. Under certain conditions, the aggregate commitments under the credit facility may be increased to $1.2 billion. The credit facility requires specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. financial ratios to be maintained, including a maximum debt to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ratio of 3.25:1 and a minimum interest coverage ratio of 4.0:1. 10. Reconciliations from U.K. GAAP to IFRS Prior to January 1, 2005, AMVESCAP reported its results of operations under U.K. Generally Accepted Accounting Practice ("U.K. GAAP"). Beginning January 1, 2005, AMVESCAP transitioned from U.K. GAAP to International Financial Reporting Standards ("IFRS"). The tables below reconcile total shareholders' funds at December 31, 2003, and December 31, 2004 under U.K. GAAP to total equity under IFRS, and loss after taxation for the year ended December 31, 2004 from U.K. GAAP to IFRS. Reconciliation of total U.K. GAAP total shareholders' funds to IFRS total equity
$ millions Dec 31, 2003 Dec 31, 2004
---------------- ----------------
U.K. GAAP total shareholders' funds $3,650 $3,577
IFRS Transition Adjustments:
Goodwill and intangibles (230) (31)
Shared based payment (12) (13)
Defined benefit obligation, net (55) (58)
Dividends 94 79
Other (5) (11)
---------------- ----------------
IFRS total equity $3,442 $3,543
================ ================
Reconciliation of U.K. GAAP loss after taxation to IFRS loss after taxation
$ millions Year ended
Dec 31, 2004
--------------------------
U.K. GAAP profit/(loss) after taxation $(312)
IFRS Transition Adjustments:
Goodwill and intangibles 280
Defined benefit obligation, net --
Sale of business 5
Other (9)
--------------------------
IFRS profit/(loss) after taxation $(36)
==========================
IFRS Transition Adjustments: Goodwill and intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. . AMVESCAP has chosen to apply IFRS 3 prospectively from the date of transition. This has resulted in the value of goodwill arising from previous acquisitions being frozen at the value held on the AMVESCAP balance sheet at January 1, 2004 and the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of any amortization charged in 2004. AMVESCAP has elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to apply IAS 21 retrospectively ret·ro·spec·tive adj. 1. Looking back on, contemplating, or directed to the past. 2. Looking or directed backward. 3. Applying to or influencing the past; retroactive. 4. to its goodwill and intangible asset balances, which were previously recorded in pounds sterling from their respective acquisition dates. The result of this application is that the goodwill and intangible assets have been redenominated into their underlying currencies and will subsequently be re-measured each reporting date for the effect of changes in foreign exchange rates. Share-based payment. AMVESCAP will recognize a charge in the Income Statement for the fair value of outstanding share awards granted to employees after November 7, 2002. The charge has been calculated using a stochastic By guesswork; by chance; using or containing random values. stochastic - probabilistic option valuation model and will be charged over the relevant vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: periods, adjusted to reflect expected and actual levels of vesting. Defined benefit obligation, net. AMVESCAP will recognize the net liability for defined benefit post retirement plan schemes on the balance sheet and will take actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin gains and losses on a systematic basis to the Income Statement, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the permitted methods of recognition under IAS 19. Sale of business. During 2004, AMVESCAP disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of its U.K. and Jersey businesses of Atlantic Wealth Management and included the previously written off goodwill related to this business in the calculation of the net gain resulting from the sale. Under IFRS 1 goodwill previously deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. from equity is not recognized in the opening balance sheet and that goodwill is not transferred into the Income Statement upon disposal of the business. This had the effect of increasing the gain reported under U.K. GAAP. Dividends. AMVESCAP will recognize dividends declared after the balance sheet date in the reporting period in which they are declared, as they represent non-adjusting events after the balance sheet date. Other. Other adjustments upon transition to IFRS include the recognition and establishment of accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. related to compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. absences, foreign exchange items and certain tax adjustments. Reclassifications. For disclosure purposes, IFRS requires that certain reclassifications be made to the financial statements that were presented under U.K. GAAP, including the presentation of distribution, transfer agent, and sub-advisory fees in the income statement separately from total revenues. Certain balance sheet reclassifications were made, including the presentation of the policyholder Policyholder An individual who owns an insurance policy. assets as investments (previously included in receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed ), the presentation of software assets as intangible assets (previously included in property and equipment assets), and the separation of deferred tax liabilities from provisions. 11. Statutory financial statements The financial information shown in this earnings release, which was approved by the Board of Directors on February 3, 2006, is unaudited and does not constitute statutory financial statements. The 2004 Annual Report has been filed with the Register of Companies on which the auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together issued a report, which was unqualified and did not contain a statement under section 237(2) or section 237(3) of the Companies Act 1985. AMVESCAP PLC Assets Under Management
(billions) 2005 2004 % Change
----------------------------------------------------------------------
Beginning Assets $382.1 $370.6
Inflows 66.3 67.0 (1.0)%
Outflows (82.5) (86.5) (4.6)%
-------------- -----------
Net flows (16.2) (19.5) (16.9)%
Market gains/reinvestment 24.4 26.0 (6.2)%
Change in money market funds and
other 0.5 (8.3) N/A
Acquisitions -- 6.1 (100.0)%
Foreign currency (4.5) 7.2 N/A
-------------- -----------
Ending Assets $386.3 $382.1 1.1%
============== ===========
Average AUM $377.6 $371.3 1.7%
----------------------------------------------------------------------
By channel: (billions) Total Retail Institutional High
Net
Worth
----------------------------------------------------------------------
December 31, 2004 $382.1 $186.0 $180.9 $15.2
Inflows 66.3 41.2 21.3 3.8
Outflows (82.5) (53.3) (25.8) (3.4)
----------- -------- ------------- -------
Net flows (16.2) (12.1) (4.5) 0.4
Market gains/reinvestment 24.4 16.0 7.9 0.5
Change in money market funds
and other 0.5 1.9 (1.6) 0.2
Foreign currency (4.5) (1.6) (2.9) --
----------- -------- ------------- -------
December 31, 2005 $386.3 $190.2 $179.8 $16.3
=========== ======== ============= =======
By asset class: (billions) Total Equity Fixed Balanced
Income
----------------------------------------------------------------------
December 31, 2004 $382.1 $178.5 $44.8 $44.1
Inflows 66.3 30.0 14.5 7.8
Outflows (82.5) (45.6) (10.4) (12.5)
------- ------- ------- --------
Net flows (16.2) (15.6) 4.1 (4.7)
Market gains/reinvestment 24.4 17.9 1.2 1.7
Change in money market funds and other 0.5 -- -- --
Foreign currency (4.5) (3.3) (0.8) 0.1
------- ------- ------- --------
December 31, 2005 $386.3 $177.5 $49.3 $41.2
======= ======= ======= ========
By asset class: (billions) Money Stable Alter-
Market Value natives
----------------------------------------------------------------------
December 31, 2004 $50.0 $43.2 $21.5
Inflows 3.3 4.2 6.5
Outflows (3.5) (3.0) (7.5)
------- ------ --------
Net flows (0.2) 1.2 (1.0)
Market gains/reinvestment -- 2.4 1.2
Change in money market funds and other 0.5 -- --
Foreign currency -- -- (0.5)
------- ------ --------
December 31, 2005 $50.3 $46.8 $21.2
======= ====== ========
By entity: (billions) AIM
--------------
Total U.S. Canada
----------------------------------------------------------------------
December 31, 2004 $382.1 $137.6 $34.6
Inflows 66.3 12.6 5.9
Outflows (82.5) (28.0) (5.7)
------- ------- ------
Net flows (16.2) (15.4) 0.2
Market gains/reinvestment 24.4 5.1 2.2
Change in money market funds and other 0.5 0.7 --
Foreign currency (4.5) -- 2.1
------- ------- ------
December 31, 2005 $386.3 $128.0 $39.1
======= ======= ======
By entity: (billions) INVESCO
--------------------------
U.S. U.K. Europe/Asia PWM
----------------------------------------------------------------------
December 31, 2004 $121.0 $49.6 $24.1 $15.2
Inflows 16.7 19.0 8.3 3.8
Outflows (24.0) (11.9) (9.5) (3.4)
------- ------ ----------- ------
Net flows (7.3) 7.1 (1.2) 0.4
Market gains/reinvestment 4.4 8.8 3.4 0.5
Change in money market funds and
other -- -- (0.2) --
Foreign currency (0.4) (4.2) (2.0) --
------- ------ ----------- ------
December 31, 2005 $117.7 $61.3 $24.1 $16.1
======= ====== =========== ======
AMVESCAP PLC Assets Under Management
(billions) Q405 Q305 % Change Q205 Q105 Q404
----------------------------------------------------------------------
Beginning Assets $380.5 $373.2 $375.4 $382.1 $362.7
Inflows 15.8 15.7 0.6% 17.6 17.2 15.8
Outflows (19.5) (20.0) 2.5% (23.3) (19.7) (23.4)
------- ------- ------- ------- -------
Net flows (3.7) (4.3) 14.0% (5.7) (2.5) (7.6)
Market
gains/reinvestment 8.9 11.1 (19.8)% 5.8 (1.4) 20.8
Change in money
market funds and
other 1.8 0.1 N/A 0.5 (1.9) 0.8
Foreign currency (1.2) 0.4 N/A (2.8) (0.9) 5.4
------- ------- ------- ------- -------
Ending Assets $386.3 $380.5 1.5% $373.2 $375.4 $382.1
======= ======= ======= ======= =======
Average AUM $380.9 $378.1 0.7% $372.7 $377.4 $374.0
----------------------------------------------------------------------
By channel: (billions) Total Retail Institutional High
Net
Worth
----------------------------------------------------------------------
September 30, 2005 $380.5 $190.0 $174.6 $15.9
Inflows 15.8 11.0 4.0 0.8
Outflows (19.5) (13.7) (5.1) (0.7)
------- ------- ------------- ------
Net flows (3.7) (2.7) (1.1) 0.1
Market gains/reinvestment 8.9 5.9 2.7 0.3
Change in money market funds and
other 1.8 (2.4) 4.2 --
Foreign currency (1.2) (0.6) (0.6) --
------- ------- ------------- ------
December 31, 2005 $386.3 $190.2 $179.8 $16.3
======= ======= ============= ======
By asset class: (billions) Total Equity Fixed Balanced
Income
----------------------------------------------------------------------
September 30, 2005 $380.5 $174.6 $47.6 $41.7
Inflows 15.8 7.7 3.3 2.0
Outflows (19.5) (10.4) (1.8) (3.2)
------- ------- ------- --------
Net flows (3.7) (2.7) 1.5 (1.2)
Market gains/reinvestment 8.9 6.5 0.4 0.7
Change in money market funds and other 1.8 -- -- --
Foreign currency (1.2) (0.9) (0.2) --
------- ------- ------- --------
December 31, 2005 $386.3 $177.5 $49.3 $41.2
======= ======= ======= ========
By asset class: (billions) Money Stable Alter-
Market Value natives
----------------------------------------------------------------------
September 30, 2005 $48.7 $46.3 $21.6
Inflows 0.7 0.4 1.7
Outflows (0.9) (0.4) (2.8)
------- ------ --------
Net flows (0.2) -- (1.1)
Market gains/reinvestment -- 0.5 0.8
Change in money market funds and other 1.8 -- --
Foreign currency -- -- (0.1)
------- ------ --------
December 31, 2005 $50.3 $46.8 $21.2
======= ====== ========
By entity: (billions) AIM
--------------
Total U.S. Canada
----------------------------------------------------------------------
September 30, 2005 $380.5 $128.7 $38.4
Inflows 15.8 2.6 1.2
Outflows (19.5) (6.8) (1.5)
------- ------- ------
Net flows (3.7) (4.2) (0.3)
Market gains/reinvestment 8.9 1.6 0.8
Change in money market funds and other 1.8 1.9 --
Foreign currency (1.2) -- 0.2
------- ------- ------
December 31, 2005 $386.3 $128.0 $39.1
======= ======= ======
By entity: (billions) INVESCO
--------------------------
U.S. U.K. Europe/Asia PWM
----------------------------------------------------------------------
September 30, 2005 $117.2 $56.4 $24.1 $15.7
Inflows 3.0 5.9 2.3 0.8
Outflows (4.3) (3.4) (2.8) (0.7)
------- ------ ----------- ------
Net flows (1.3) 2.5 (0.5) 0.1
Market gains/reinvestment 1.9 3.4 0.9 0.3
Change in money market funds and
other -- -- (0.1) --
Foreign currency (0.1) (1.0) (0.3) --
------- ------ ----------- ------
December 31, 2005 $117.7 $61.3 $24.1 $16.1
======= ====== =========== ======
AMVESCAP PLC Additional Income and Expense Information The Consolidated Income Statements for 2005 and 2004 include the following items:
2005 2004
-------------------- -------------------
$ millions Q405 Q305 Full Q304 Q104 Full
Year Year
------ ------ ------ -------------------
Operating items:
Compensation - Expenses
related to German Bank -- (4.7) (4.7) -- -- --
Compensation - Recruitment -- (11.8) (11.8) -- -- --
Property and Office -
Leasehold charges -- (11.4) (11.4) (37.0) -- (37.0)
General and Administration
- Goodwill impairment (16.6) -- (16.6) -- -- --
Other (loss)/income items:
Gain on sale of businesses -- 32.6 32.6 -- 11.8 11.8
Outsourcing U.K. DC platform -- (7.2) (7.2) -- -- --
Taiwan bond funds capital
infusion (11.3) -- (11.3) -- -- --
Foreign exchange revaluation (6.8) -- (6.8) -- -- --
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