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Friday, 9 February 2018

Amundi: Results for 2017 and strategic ambitions for 2020

Amundi    

Published: 07:06 CET 09-02-2018 /GlobeNewswire /Source: Amundi / : AMUN /ISIN: FR0004125920


Amundi: Results for 2017 and strategic ambitions for 2020

 

2017: all targets announced at the IPO have been surpassed
Net inflows of €71bn, leading to asset under management of €1,426bn

Combined and adjusted net earnings[1] of €918m, up +14%

 

2020 objectives: an amplified growth and profitability momentum

Cumulated net inflows greater than or equal to €150bn

2020 net income double that of 2015:

Target accounting income greater than or equal to €1bn, adjusted net income[2] greater than or equal to €1.05bn

 

Full Year 2017

Business activity

High combined net inflows[3] in 2017 (+€70.6bn) 

 In Q4 2017: robust inflows (+€13.1bn), led by Retail and MLT assets[4]

Assets under management[5] of €1.426tn at 31 December 2017

Results

Combined income1 increased significantly:

In 2017

Net revenue2 of €2,722m, up +7.5% vs. 2016

A cost/income ratio[6] of 52.4%, an improvement of 2.8 pts over 2016

Adjusted net income, Group share6 of €918m, up 14.1% vs. 2016

In Q4 2017:

Net revenue2 of €751m, up +11.6% vs. Q4 2016

Adjusted net income Group share6 of €269m, up 22.0% vs. Q4 2016

 

Accounting income[7]:

 In 2017: Net income Group share of €681m vs. €568m in 2016 (+19.9%)

 In Q4 2017: Net income Group share of €209m, up 37% vs. Q4 2016

Dividend

Dividend proposed at the General Meeting €2.50 per share (+13.6% vs. 2016)

 

Strategic ambitions for 2020

Strategic priorities

A development strategy and organization confirmed

A business model strengthened by the integration of Pioneer

A greater momentum in growth and profitability

2020 objectives[8]

Cumulated net inflows greater than or equal to €150bn from 2018 to 2020

Cost/income ratio1 lower or equal to 53%  

Adjusted net income1 greater than or equal to €1.05bn in 2020, equivalent to average annual growth of c. 7%[9]

 

Dividend pay-out ratio of 65%

 

 

Paris, 9 February 2018

 

Amundi's Board of Directors, chaired by Xavier Musca, convened on 8 February 2018 to approve the financial statements for 2017.

Commenting on the figures, Yves Perrier, CEO, said: "As in 2016, in 2017 Amundi has exceeded the business and financial targets that were set when it was listed in late 2015. These good results confirm the strength of Amundi's business model, which has been further boosted by the integration of Pioneer in three key areas: distribution capacity, expertise and talent. In this context, the new targets for 2018-2020 provide for acceleration in growth and profitability, with in particular a two-fold increase in net income in relation to the level seen at the time of Amundi's listing."

 

 

***

 

Full Year 2017

Very strong activity, with assets under management rising to €1.426tn and results up significantly thanks to the integration of Pioneer and to robust activity

 

In 2017, Amundi saw stronger growth relative to the previous year, with €70.6bn in net inflows[10] and adjusted net income10,[11] of €918m, an increase of 14.1%.

All the targets announced at the time of the IPO in November 2015 have been surpassed:

  • Activity: inflows10 of €131bn in two years (2016-2017), above the target of €120bn in three years.
  • Operational efficiency: cost/income ratio of 52.4%11 in 2017, below the announced maximum of 55% and one of the best in the industry.
  • Profitability: average Earnings per Share growth of +12.5% between 2015 and 2017[12], which is higher than the target (+5% per year) despite the capital increase carried out in April 2017.
  • Dividends: pay-out ratio of 65% in 2017, above the announced target of 60%.

 

These results generated significant value creation for the shareholders of Amundi, whose market capitalisation (€14.1 bn on 6 February 2018) has doubled since the IPO on 11 November 2015. Amundi has become the largest listed asset manager in Europe in terms of market capitalisation and the fourth in the world.

 

Activity in 2017

 

Combined assets under management reached €1.426tn on 31 December 2017, benefiting from the contribution of Pioneer's assets (+€242.9bn; consolidated from H2 2017), strong inflows (+€70.6bn10) and a favourable market effect (+€26.7bn), particularly in equities.

Note: all AuM and inflows below are presented as combined.

 

Net inflows were strong and diversified. Each client segment, management expertise and region recorded positive net inflows. These were largely driven by strong trends in Retail (70% of the total), the International segment (73%) and medium/long-term products (51%).

Indeed, the Retail segment has seen substantial activity, with net inflows in 2017 of +€49.6bn, achieved across all distribution channels, compared to +€31.5bn in 2016.

Inflows were robust in the French networks, particularly in medium/long-term products (+€4.4bn), largely thanks to unit-linked life insurance policy subscriptions. This confirms the positive trend observed since the second half of 2016.

Activity in the international networks (+€10.2bn) was up significantly. This was particularly true in Italy (+€9bn), where large inflows were recorded in the UniCredit networks (+€6.5bn), reflecting an excellent start to the partnership.

Excellent trends were also observed for third-party distributors (+€17.6bn vs. +€7.3bn in 2016), primarily in Europe, Japan and the United States.

Regarding joint ventures, inflows remained satisfactory (+€17.8bn) and were particularly strong in China and India.

The Institutionals and Corporates segment recorded solid net inflows (+€21bn in 2017). This figure nonetheless represents a decline from 2016 level (+€28.9bn), a fact attributable to the €6.9bn mandate reinternalized by the ECB in Q1 2017. Excluding this impact, net inflows were almost stable.

All asset classes contributed to net inflows in 2017. Medium/long-term assets represented +€36.2bn (+€43.1bn excluding the ECB mandate). The trends were particularly favourable in the following areas of expertise: ETFs (+€10.2bn[13]), where Amundi has grown two times more than the market[14] in terms of inflows in 2017, real estate (+€4.9bn), emerging market assets (+€7.4bn13) and diversified products (+€18.9bn).

Finally, the majority of net inflows continued to come from the international segment (73% of total inflows), encompassing all the regions. Activity was robust in Europe (particularly France, Italy and Germany), the United States and Asia.

 

 

Results in 2017

 

Accounting income[15]

Accounting income rose sharply in 2017, benefiting from the contribution of Pioneer (consolidated in H2) and the Group's financial performance: accounting net income, Group share (including integration costs and the amortisation of distribution contracts) amounted to €681m, an increase of 19.9% over 2016. Adjusted net income Group share[16] was €800m, up +38% vs. 2016.

 

Combined results[17] 

The combined results, which are used to appraise the Group's performance on a comparable basis, increased significantly thanks to solid gains in revenues (including a high level of performance fees and financial revenues) and the improved cost/income ratio.

Net revenues[18] amounted to €2,722m, up +7.5% on 2016, in line with the increase in assets under management. Performance fees (€180m) recorded strong growth amidst a particularly favourable market environment. Amundi also benefited from considerably high financial revenues (€95m) associated with asset disposals.

Operating expenses[19] remained under control, increasing only +2.1%; the result was a cost/income ratio16 of 52.4%, a 2.8-point improvement which included the initial impacts of synergies.

The share of net income of equity-accounted entities (essentially Asian joint ventures) rose significantly (+16%, in line with assets under management), to €33m.

Taking into account a tax charge16 of €393m, adjusted net income, Group share amounted to €918m, an increase of +14.1% on 2016.

 

 

Q4 2017 performance in line with the first nine months

Business activity

Net inflows were strong (+€13.1bn), led by Retail and MLT Assets (+€10.4bn). By client segment, performance was uneven:

  • Robust net inflows in Retail (+€14.2bn, o/w +€8.3bn excl. JVs), driven by growth in the international networks (particularly Italy) and third-party distributors (Europe, Japan). Net inflows from the French networks (+€1.0bn) and joint ventures (+€6.0bn) remained strong.
  • Slight net outflow in the Institutionals segment (-€1.1bn) attributable to outflows in treasury products (seasonality effect) after significant net inflows recorded in the third quarter (+€18bn).

Results

Accounting figures:

Accounting net income, Group share (including integration costs and the amortisation of distribution contracts) amounted to €209m, a 37% increase vs. 2016. Adjusted net income, Group share[20] was €269m, a 72.6% increase vs. 2016.

Combined figures

At €751m, net revenues[21] were up 11.6%. This result is linked to growth in assets under management and strong results for performance fees (€82m) and financial revenues (€34m, attributable to disposals of minority interests). Thanks to a moderate increase in operating expenses[22] (+2.9%), the cost/income ratio20 improved by 4.3 points to 50.8%. After tax20, adjusted net income, Group share was €269m (+22%).

 

An attractive dividend policy

 

The Board of Directors has decided to propose a dividend of €2.50 per share in cash at the General Meeting to be held on 15 May 2018, i.e. an increase of +13.6% vs. 2016.

This proposed dividend represents a pay-out ratio of 65% of the Group's share of net income excluding integration costs (based on the number of shares at end-2017), and a 3.6% yield based on the share's closing price on 6 February 2018. Shares shall be designated ex-dividend on 22 May 2018 and dividends will be paid out as from 24 May 2018.

 

 

Strategic ambitions for 2018-2020

 

 

Amundi's ambition is to become one of the leaders in the global asset management industry, based on:

  • the quality of the expertise and services it offers to its clients,
  • its strong growth and profitability trends,
  • its position as a committed financial player.

 

Strategic priorities

Amundi's successful growth momentum since its creation and its profitability reflect the effectiveness of its business model, which is based on the following principles:

  • a client-centric organisational structure, both global and local,
  • a policy of innovation allowing to bring to customers a wide range of expertises matching their expectations,
  • robust infrastructure (particularly in IT),
  • an entrepreneurial spirit.

 

For the 2018 to 2020 period, this strategy and this organization are confirmed. The integration of Pioneer has reinforced this business model in three key dimensions: distribution capabilities, expertises and talents.

 

Amundi is thus well positioned to continue its profitable growth, with two priorities:

  • Consolidate its position as a reference partner in the Retail segment through its savings solutions for networks and distributors. Amundi will leverage on new growth drivers: partnership with the UniCredit networks (particularly in Italy, Germany, Austria and Eastern Europe), strong prospects in the French market, capacity to provide expertise in order to strengthen its relations with third-party distributors and joint venture.
  • Accelerate its development in the Institutionals segment. Amundi seeks on one hand to increase its penetration rate on all geographic areas (Europe, Asia, US), and on the other hand to increase its market share leveraging its broad range of expertise, notably in US equities and emerging markets assets.

 

Moreover, Amundi also plans to strengthen its service provider positioning (IT, market access platform.) in order to cover the entire value chain.

 

As a responsible and recognized financial player, Amundi has made of social commitment one of its fundamental pillars since its creation in 2010. This policy will be continued in 3 directions:

  • Mainstreaming ESG criteria in its investment policies, in addition to financial criteria. Socially Responsible Investing (SRI) AuM already amount to €168bn at end 2017, making Amundi one of the leaders in Europe.
  • Strengthening its Impact Investing policy, notably via the fund Finance & Solidarités which AuM are expected to grow from €160m to €500m.
  • Continuing its engagement approach towards issuers and its specific initiatives focused on climate change: JV with EDF for Energy transition financing, partnership with IFC[23] on green bonds.

 

 

As in previous years, Amundi's strategy is based on organic growth, which explains most of the AuM increase since 2010.

However, targeted acquisition opportunities may be seized, provided they strengthen the business-model and meet the Group's financial criteria.

 

Financial objectives for 2018-2020

 

The financial objectives set for the 2018-2020 period are upgraded versus those announced at the IPO, and are the following:

 

  • Activity: total net inflows of at least €150bn over 3 years (vs. €120bn for the previous period of 2016-2018), of which €60bn in Retail, €60bn in Institutionals and €30bn in JVs;
  • Operational efficiency: cost/income ratio lower or equal to 53% (vs lower or equal to 55% previously), which includes some reinvestments aimed at fuelling future growth;
  • Profitability: double the 2015 net income (the year of the IPO):
    • accounting net income greater than or equal to €1bn in 2020,
    • adjusted net income greater than or equal to €1.05bn, amounting to average annual growth of approximately 7% between 2017[24]and 2020, vs.+5% before.
  • Financial structure and dividend:
    • Pay-out ratio at 65% of net income (excluding integration costs).
    • CET1 ratio significantly above the regulatory minimum

 

 

Other items

 

Capital increase reserved for employees

A capital increase reserved for employees is planned for mid-2018[25]. This operation, meant to strengthen employees' corporate spirit following the Pioneer acquisition, will be carried out in the context of existing legal powers as approved by the General Shareholders' Meeting of May 2017.

The impact of this capital increase on net earnings per share should be negligible: the maximum number of shares to be issued is 900,000 (i.e., less than 0.5% of capital and voting rights), and the discount offered to employees is expected to be similar to that offered during the first capital increase reserved for employees in December 2015 (20%).

 

 

Nomination of a new member at the Board 

Amundi's Board has decided to appoint Gianni Franco Papa, General Manager of UniCredit, as non-voting member, representing UniCredit, the new partner network of Amundi. He is taking over from François Veverka.  

 

 

Financial disclosure schedule

27 April 2018:                     Publication of first-quarter 2018 results

15 May 2018:                      General Shareholders' Meeting

22 May 2018:                      Ex-dividend date

24 May 2018:                      Dividend pay-out date

2 August 2018:                    Publication of first-half 2018 results

26 October 2018:               Publication of results for the first nine months of 2018

 

***


 

 

Financial objectives for 2018-2020

 

  • Activity: total net inflows of at least €150bn over 3 years, of which
    • €60bn in Retail,
    • €60bn in Institutionals,
    • €30bn in JVs
  • Operational efficiency: cost/income ratio lower or equal to 53%, including some reinvestments aimed at fuelling future growth.
  • Profitability: double the 2015 net income (the year of the IPO):
    • accounting net income greater than or equal to €1bn in 2020,
    • adjusted net income greater than or equal €1.05bn, equivalent to an average annual growth of approximately 7% between 2017[26]and 2020.

 

  • Financial structure and dividend:
    • Pay-out ratio at 65% of net income (excluding integration costs)
    • CET1 ratio significantly above the regulatory minimum

 

 

 

Assumptions

These objectives are based on the following assumptions:

absence of market effect during the period,

stable average margin on assets under management (excluding JVs).

 

Key sensitivities

 

      
      

Changes in the equity markets

+/- 10%

 

  +/- €25/30bn

in Assets under Management (AUM)

 

+/- €80-85m in net revenues
(run rate, excl. performance fees)

      
      

Changes in interest rates

+/- 100 pts

 

-/+ €30-35bn

in Assets under Management (AUM)

 

-/+ €35-40m in net revenues
(run rate, excl. performance fees)

      
      

These sensitivities do not include an indirect effect on net inflows from market fluctuations.

 

 

***

Consolidated income statement (1)

 

€m

 

2017

 

2016

 

Change

 

Q4.2017

 

Q4.2016

 

Change

Net revenue (2)  

 

2,301

 

1,694

 

35.8%

 

751

 

447

 

68.0%

o/w net management fees

 

2,029

 

1,510

 

34.4%

 

636

 

388

 

63.7%

o/w performance fees

 

175

 

115

 

52.2%

 

82

 

28

 

NS

o/w Net financial income and other net income (2)

 

97

 

69

 

40.9%

 

34

 

31

 

8.3%

Adjusted operating expenses (3)

 

-1,173

 

-878

 

33.7%

 

-381

 

-236

 

61.8%

Adjusted gross operating income (2) (3)

 

1,128

 

816

 

38.2%

 

370

 

212

 

74.9%

Adjusted cost/income ratio  2 3

 

51.0%

 

51.8%

 

-0.8 pt

 

50.8%

 

52.7%

 

-1.9 pt

Cost of risk & Other

 

-15

 

-1

 

NS

 

-8

 

0

 

NS

Equity-accounted entities

 

33

 

28

 

16.3%

 

9

 

8

 

11.8%

Income before tax (2) (3)

 

1,146

 

844

 

35.8%

 

370

 

219

 

69.1%

Taxes  2 3

 

-347

 

-264

 

31.5%

 

-102

 

-63

 

60.9%

Adjusted net income, Group share (2) (3)

 

800

 

579

 

38.0%

 

269

 

156

 

72.6%

Amortisation of distribution contracts after tax

 

-30

 

-11

 

NS

 

-12

 

-3

 

NS

Amundi net income, Group share before integration costs

 

769

 

568

 

35.4%

 

256

 

153

 

67.6%

Pioneer integration costs after tax

 

-88

 

0

 

NS

 

-47

 

0

 

NS

Net income, Group share

 

681

 

568

 

19.9%

 

209

 

153

 

37.0%

EPS (€)

 

3.54

 

3.40

 

4.3%

 

 

 

 

 

 

Adjusted EPS (€)

 

4.16

 

3.46

 

20.0%

 

 

 

 

 

 

 

 

(1) Accounting income:  in 2017 and 2016, the information consists of:

For 2017: data for Amundi (12 months of activity) and Pioneer Investments (six months of activity).

For Q4: data for Amundi (Q4) and Pioneer Investments (Q4).

 

Adjustments Restatement of net accounting revenues from the amortisation of distribution contracts (UniCredit as from 1 July 2017, SG and Bawag in 2016 and 2017), and restatement of 2017 accounting operating expenses for Pioneer integration costs.  These two items are shown net of taxes in the table above.

 

(2) Excl. amortisation of distribution contracts  

 

(3) Excl. Pioneer integration costs

 

 

Combined income statement (1) 

 

€m

 

2017

 

2016

 

Change

 

Q4.2017

 

Q4.2016

 

Change

Net revenue (2)

 

2,722

 

2,533

 

7.5%

 

751

 

673

 

11.6%

  o/w net management fees

 

2,445

 

2,327

 

5.1%

 

636

 

597

 

6.4%

  o/w performance fees

 

180

 

133

 

35.1%

 

82

 

44

 

85.8%

Net financial income and other net income (2) 

 

97

 

73

 

32.9%

 

34

 

31

 

8.3%

Adjusted operating expenses 3

 

-1,428

 

-1,399

 

2.1%

 

-381

 

-371

 

2.9%

Adjusted gross operating income 2 3

 

1,295

 

1,134

 

14.2%

 

370

 

302

 

22.4%

Adjusted cost/income ratio (2) (3)

 

52.4%

 

55.2%

 

-2.8 pts

 

50.8%

 

55.1%

 

-4.3 pts

Cost of risk & Other

 

-16

 

-5

 

NS

 

-8

 

-1

 

NS

Equity-accounted entities

 

33

 

28

 

16.3%

 

9

 

8

 

11.8%

Income before tax (2) (3)

 

1,311

 

1,158

 

13.3%

 

370

 

309

 

19.9%

Taxes (2) (3)

 

-393

 

-352

 

11.8%

 

-102

 

-88

 

15.2%

Adjusted net income, Group share  (2) (3)

 

918

 

805

 

14.1%

 

269

 

220

 

22.0%

Amortisation of distribution contracts after tax

 

-30

 

-11

 

NS

 

-12

 

-3

 

NS

Pioneer integration costs after tax

 

-88

 

0

 

NS

 

-47

 

0

 

NS

Net income, Group share

 

800

 

794

 

0.8%

 

210

 

218

 

-3.7%

 

 

 

  Combined income:  in 2017 and 2016, the information consists of:

For 2017: combined data for Amundi (12 months of activity) and Pioneer Investments (12 months of activity).

For Q4: combined data for Amundi (Q4) and Pioneer Investments (Q4).

 

Adjustments: restatement of net revenues from the amortisation of distribution contracts (UniCredit as from 1 July 2017, SG and Bawag in 2016 and 2017), and restatement of 2017 accounting operating expenses for Pioneer integration costs.  These two items are shown net of taxes in the table above.

 

Excl. amortisation of distribution contracts 

 

 (3) Excl. Pioneer integration costs

 

 

Change in assets under management from 2015 to 2017

(€bn)

AuM

Net inflows

Market

effect

Scope effect

 

At 31/12/2015

985

 

 

 

 

Flows in Q1 2016

 

+13.8

-11.6

/

 

At 31/03/2016

987

 

 

 

 

Flows in Q2 2016

 

+3.0

+13.6

/

 

At 30/06/2016

1,004

 

 

 

 

Flows in Q3 2016

 

+22.3

+19.7

+8.6

KBI GI

At 30/09/2016

1,054

 

 

 

 

Flows in Q4 2016

 

+23.1

+0.1

+5.0

CAI Investors

At 31/12/2016

1,083

 

 

 

 

Flows in Q1 2017

 

+32.5

+12.5

/

 

At 31/03/2017

1,128

 

 

 

 

Flows in Q2 2017

 

-3.7

-3.1

/

 

At 30/06/2017

1,121

 

 

 

 

Integration of

Pioneer Investments

/

/

/

+242.9

Pioneer

Flows in Q3 2017

 

+31.2

+5.3

/

 

At 30/09/2017

1,400

 

 

 

 

Flows in Q4 2017

 

  +13.1

  +12.7

/

 

At 31/12/2017

  1,426

 

 

 

 

 

 

Details of assets under management and net inflows by client segment (combined)

 

  

AuM

AuM

% chg.

 

Inflows

Inflows

 

Inflows

Inflows

Inflows

(€bn)

  

31/12/2017

31/12/2016

  

12M 2017

12M 2016

 

Q4-17

Q3-17

Q4-16

French networks*

  

107

100

+7.3%

 

+4.0

-2.6

 

+1.0

+1.8

+1.7

International networks & JVs

  

236

206

+14.8%

 

+28.0

+26.8

 

+8.4

+7.0

+12.6

Third-party distributors

  

181

163

+11.2%

 

+17.6

+7.3

 

+4.8

+4.3

+5.2

Retail

  

524

469

+11.9%

 

+49.6

+31.5

 

+14.2

+13.1

+19.5

Institutionals** & sovereigns

  

354

340

+4.2%

 

+10.8

+17.1

 

-5.3

+11.3

-2.0

Corporates & employee savings

  

129

115

+11.6%

 

+7.9

+13.8

 

+5.0

+6.3

+11.8

CA & SG insurers

  

419

405

+3.4%

 

+2.3

-2.0

 

-0.8

+0.4

-7.7

Institutionals

  

902

860

+4.8%

 

+21.0

+28.9

 

-1.1

+18.0

+2.1

             

TOTAL

  

1,426

1,329

+7.3%

 

+70.6

+60.4

 

+13.1

+31.2

+21.6

o/w JVs

  

118

99

+18.3%

 

+17.8

+24.8

 

+6.0

+4.6

+12.3

* French networks: net inflows on medium/long-term assets +€4.4bn in 2017, o/w +€0.9bn in Q4 2017

** Including Funds of funds

 

Details of assets under management and net inflows by asset class (combined)

(€bn)

  

AuM

31/12/2017

AuM

31/12/2016

% chg.

 

Inflows

12M 2017

Inflows

12M20 16

 

Inflows

Q4-17

Inflows

Q3-17

Inflows

Q4-16

Equities

  

232

200

+16.2%

 

+10.7

+10.5

 

+3.7

+2.9

+1.3

Diversified

  

255

231

+10.6%

 

+18.9

+12.1

 

+5.7

+4.9

+3.8

Bonds

  

646

644

+0.3%

 

+3.8*

+21.3

 

-0.2

+7.0

+12.5

Real, alternative and structured assets

  

70

65

+7.8%

 

+2.8

+1.3

 

+1.2

-0.1

+0.9

MLT ASSETS

  

1,203

1,140

+5.6%

 

+36.2

+45.3

 

+10.4

+14.7

+18.5

Treasury products

  

223

189

+17.7%

 

+34.4

+15.2

 

+2.7

+16.4

+3.1

             

TOTAL

  

1,426

1,329

+7.3%

 

+70.6

+60.4

 

+13.1

+31.20

+21.6

* Impact of the ECB's reinternalisation of a mandate in Q1 2017 for -€6.9bn

Details of assets under management and net inflows by region (combined)

 

  

AuM

AuM

% chg.

 

Inflows

Inflows

 

Inflows

Inflows

Inflows

(€bn)

  

31/12/2017

31/12/2016

  

12M 2017

12M 2016

 

Q4-17

Q3-17

Q4-16

France

  

841*

800

+5.1%

 

+19.4

+16.0

 

-8.3

+19.3

-1.7

Europe excl. France

  

325

295

+10.0%

 

+22.9

+18.3

 

+10.8

+4.4

+9.6

Asia

  

177

153

+15.9%

 

+23.6

+26.7

 

+8.3

+7.1

+13.3

Rest of world

  

83

81

+3.0%

 

+4.7

-0.6

 

+2.3

+0.3

+0.4

             

TOTAL

  

1,426

1,329

+7.3%

 

+70.6

+60.4

 

+13.1

+31.2

+21.6

TOTAL excl. FRANCE

  

585

529

+10.7%

 

+51.2

+44.4

 

+21.4

+11.8

+23.3

 

*  o/w €405 for Group insurers  

 

 

 

***

 

 


 

Methodological appendix

 

2017 Income statement

 

Accounting data

In 2017, the data corresponds to 12 months of activity for Amundi and six months of Pioneer's activity since 1 July 2017. In 2016, the data corresponds to 12 months of activity for Amundi

 

To present an income statement that is closer to the economic reality, the following adjustments have been made:

in 2017: restatement of Pioneer-related integration costs,

in 2016 and 2017: amortisation of distribution contracts (deducted from net revenues) with SG and BAWAG and, starting in Q3 2017, with UniCredit.

 

Combined data

In 2017 and 2016, the data includes:

For the year: combined data for Amundi (12 months of activity) and Pioneer (12 months of activity).

For Q4: combined data for Amundi (Q4) and Pioneer (Q4).

 

Pioneer data for 2016 and H1 2017 include the following items:

Scope affected by the transaction (excluding Poland and India)

Normalisation of Pioneer's tax rate

 

The combined data are different from the pro forma data (as presented in the 2016 Registration Document), which included restatements for the financing assumptions of the acquisition of Pioneer: additional financing costs reduced financial income.

 

Note on accounting and combined figures

 

Costs associated with the integration of Pioneer Investments:

FY 2017: €135m before tax and €88m after tax

Q4 2017: €77m before tax and €47m after tax 

 

Amortisation of distribution contracts:

FY 2017: €44m before tax (€30m net of tax)

Q4 2017: €18m before tax (€12m net of tax)

 

Amortisation of distribution contracts with UniCredit

 

When Pioneer was acquired, 10-year distribution contracts were entered into with UniCredit networks in Italy, Germany, Austria, and the Czech Republic; the gross valuation of these contracts came to €546m (posted to the balance sheet under Intangible Assets). At the same time, a Deferred Tax Liability of €161m was recognised. Thus the net amount is €385m which will be amortised using the straight-line method over 10 years, as from 1 July 2017.

In the Group's income statement, the net tax impact of this amortisation will be €38m over a full year (€55m before taxes), posted under "Other revenues," and will be added to existing amortisations of the SG and Bawag distribution contracts of €11m net of taxes over a full year (€17m before taxes).

 

Alternative Performance Indicator

 

Adjusted net income

In order to present a performance indicator that is closer to economic reality, Amundi publishes adjusted net income, which is reconciled with accounting net income, Group share in the following manner:

 

€m

2017(1)

2016(2)

Accounting net income, Group share

681

568

 + Integration costs after tax

+88

0

 + Amortisation of distribution contracts after tax

+30

+11

Adjusted net income, Group share

800

579

(1) 12 months for Amundi and six months for Pioneer

(2) 12 months for Amundi

 

Combined net income

To appraise the new Group's performance on a comparable basis, Amundi also publishes combined net income, which includes 12 months of Pioneer's income in 2016 and six months of Pioneer's income in 2017:

 

€m

2017

2016

Accounting net income, Group share

681

568

  + Pioneer's income in H1 2017

+119

/

+ Pioneer's income in 2016

/

+226

Combined net income, Group share

800

794

 

 

 

Shareholder structure

 

 

31 December 2015 

31 December 2016 

31 December 2017

 

(shares)

% interest

(shares)

% interest

(shares)

% interest

Crédit Agricole Group

126,321,001

75.5%

127,001,233

75.6%

141,057,399

70.0%

Employees

453,557

0.3%

413,753

0.2%

426,085

0.2%

Free float

40,470,679

24.2%

40,449,438

24.1%

59,985,943

29.8%

Shares controlled by the company (liquidity programme)

0

0.0%

61,045

0.1%

41,135

0.02%

Number of shares at end of period

167,245,237

100.0%

167,925,469

100.0%

201,510,562

100.0%

Average number of shares for the period

166,810,578

167,366,374

192,401,181

 

Average number of shares for 2015, 2016 and 2017 calculated on a pro-rata basis

 

About Amundi

 

Amundi is Europe's largest asset manager by assets under management and ranks in the top 10[27] globally. Thanks to the integration of Pioneer Investments, it now manages more than 1.4 trillion[28] euros of assets across six main investment hubs[29]. Amundi offers its clients in Europe, Asia-Pacific, the Middle-East and the Americas a wealth of market expertise and a full range of capabilities across the active, passive and real assets investment universes.  Headquartered in Paris, and listed since November 2015, Amundi is the 1st asset manager in Europe by market capitalization[30].

Leveraging the benefits of its increased scope and size, Amundi has the ability to offer new and enhanced services and tools to its clients. Thanks to its unique research capabilities and the skills of close to 5,000 team members and market experts based in 37 countries, Amundi provides retail, institutional and corporate clients with innovative investment strategies and solutions tailored to their needs, targeted outcomes and risk profiles.

 

Amundi. Confidence must be earned.

 

Visit www.amundi.com for more information or to find the Amundi team closest to you.


 

Press contact:

Natacha Andermahr

Tél. +33 1 76 37 86 05

natacha.andermahr-sharp@amundi.com

 

 

 

Investors relations:

 

Anthony Mellor 

Tél. +33 1 76 32 17 16 

anthony.mellor@amundi.com 

 

 

Thomas Lapeyre
Tél. +33 1 76 33 70 54
thomas.lapeyre@amundi.com

 

 

 

DISCLAIMER:

 

This document may contain forward-looking statement concerning the financial situation and results of Amundi.
The figures given do not constitute a "forecast" as defined in Article 2.10 of Commission Regulation (EC) No. 809/2004 of 29 April 2004.

These forward-looking statements are based on opinions and current assumptions regarding future events. No guarantee can be given regarding the achievement of these forward-looking statement , which are subject to inherent risks, uncertainties and assumptions related to Amundi, its subsidiaries and its investments, the development of its activities, sectoral trends, future investments and acquisitions, changes in the economic environment or in Amundi's major local markets, competition and regulations. Given the uncertainty over whether these events will come to pass, their outcome may prove different than currently predicted, which may significantly affect expected results. The reader should take these risks and uncertainties into consideration before forming their own opinion. Management does not under any circumstances undertake to update or revise any of this forward-looking statement. No information contained in this presentation should be taken as an earnings forecast.

The figures have been prepared in accordance with IFRS, as adopted by the European Union and applicable at this date. Statutory auditors are carrying out the audit procedures on the consolidated financial statements for 2017.

The information contained in this document, to the extent that it relates to parties other than Amundi or comes from external sources, has not been independently verified, and no representation or warranty has been expressed as to, nor should any reliance be placed on, the fairness, accuracy, correctness or completeness of the information or opinions contained herein. Neither Amundi nor its representatives can be held liable for any negligence or loss that may result from the use of this document or its contents, or anything related to them, or any document or information to which the presentation may refer.

 

 



[1] The combined figures aim at presenting  economic trends for Amundi after the integration of Pioneer for full years 2016 and 2017. Combined figures therefore include 12 months of Pioneer data.

[2] Adjusted figures exclude amortisation of distribution contracts and costs associated with the integration of Pioneer which are exceptional.

[3] Combined data in 2016 and 2017.

[4] Assets excluding treasury products: equities; bonds; multi-assets; real, alternative and structured assets.

[5]Assets under management and inflows include assets under advisory and assets sold and take into account 100% of assets under management and inflows on the Asian JVs. For Wafa in Morocco, assets are reported on a proportional consolidation basis.

[6] Excluding the costs associated with the integration of Pioneer and excluding the amortisation of distribution contracts.

[7] Accounting figures include Pioneer data only since the effective acquisition date (3rd of July 2017). Therefore, Amundi's accounting figures include Pioneer data only in the 2nd half of 2017. In 2016 Amundi's accounting figures do not include Pioneer data.

[8] See details and assumptions on page 7

[9] From a combined and adjusted 2017 net income, including a normalized level of financial income

[10] Combined data for Amundi + Pioneer

[11] Excluding the costs associated with the integration of Pioneer (€135m before tax and €88m after tax in 2017) and excluding the amortisation of distribution contracts (€44m before tax and €30m after tax in 2017)

[12] Excluding integration costs in 2017. Computed on an Accounting EPS, compounded annual growth is +5.8%.

[13] Excl. JVs

[14] Source Deutsche Bank ETF Market review at end December  2017

[15] Accounting figures include Pioneer data only since the effective acquisition date (3rd of July 2017). Therefore, Amundi's accounting figures include Pioneer data only in the 2nd half of 2017. In 2016 Amundi's accounting figures do not include Pioneer data

[16] Excluding the costs associated with the integration of Pioneer (€135m before tax and €88m after tax in 2017) and excluding the amortisation of distribution contracts (€44m before tax and €30m after tax in 2017)

[17] Combined data in 2016 and 2017: 12 months Amundi + 12 months Pioneer

[18] Excluding amortisation of distribution contracts (UniCredit, SG, and Bawag) 

[19]Excluding costs associated with the integration of Pioneer Investments

[20] Excluding amortisation of distribution contracts and Pioneer integration costs

[21] Excluding amortisation of distribution contracts 

[22] Excluding costs associated with the integration of Pioneer Investments

[23] International Finance Corporation, a subsidiary of the World Bank.

[24] Net income for 2017 combined and adjusted, including a normalised level of financial income

[25] Subject to necessary approvals

[26] Combined and adjusted net income for 2017, with a normalised level of financial income

[27] Source IPE "Top 400 asset managers" published in June 2017 and based on AUM as of end December 2016.

[28] Amundi figures as of December 31, 2017

[29] Investment hubs: Boston, Dublin, London, Milan, Paris and Tokyo

[30] Based on market capitalization as of December 31, 2017



PR



This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of Nasdaq Corporate Solutions clients. Source: Amundi, 91 boulevard Pasteur, 75015 Paris, FRANCE
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