Amundi: Financial year 2022
*Amundi: Financial year 2022*
*Net income*^*1*^*,*^*2**of **€1.2bn** and** p**ositive inflows of +€7bn*
*2022* *Positive inflows of +€7bn, particularly on the highest-margin segments and areas of expertise*, in a European asset management market that experienced large outflows^3
· *Retail* (excl. JVs): *+€10bn*
· *MLT assets* (excl. JVs): *+€8bn*
*Adjusted n**et income*^*1*^*,*^*2**of €1.2bn*,* stable *compared to 2021 excl. the exceptional level of performance fees
· Net management fees up by +7.6% vs. 2021, stable on a like-for-like basis^4
· Operating expenses^2 down vs. 2021 on a like-for-like basis^4
· *Cost/income ratio 53.3%*^*2*
*Q**4 2022* *Net inflows of +€15bn*
*Adjusted net income*^*1*^*,*^*2** of €303m, up +7.5% Q4/Q3*
· Sustained management fees and high level of performance fees
· Good cost control, cost/income ratio^2 at 52.1%
*Lyxor* *F**ull integration of Lyxor completed in **less than** nine months*
*F**irst** cost and revenue** synergies generated more quickly than **planned*
*Financial s**tructure *
*& **Dividend* *CET1*^*5** ratio at 19.1%*, well above regulatory requirements
*Dividend proposed to AGM identical to 2021: €4.10 per share*
*Paris, 8 February 2023*Amundi’s Board of Directors, chaired by Yves Perrier, convened on 7 February 2023 to review the fourth-quarter and full-year 2022 financial statements.
*Valérie Baudson, CEO,* said:
“Amundi posted strong performances in 2022.
Our net income^1stood at €1.2bn, and our net inflows ended the year in decidedly positive territory, in contrast to the European asset management market.
These results were achieved thanks to the quality of our investment management teams, the adaptation of our product offering, but also thanks to our ability to lower our cost base in an unfavourable market environment.
In 2022 Amundi continued its development, focusing on the growth drivers of its 2025 Ambitions Plan, namely in real assets, passive management, technology, services and Asia.
Lastly, the integration of Lyxor was successfully completed in less than nine months. It makes Amundi a European leader in ETFs, with a fully-operational platform, and it is already delivering cost and revenue synergies.
Our agility, growth drivers, diversification, high level of profitability and financial solidity allow us to be confident in Amundi’s value-creating capacity.
We propose to our shareholders a dividend for 2022 stable vs. 2021.”
1. *2022 Highlights*
*Amundi **outperforms **in **bear markets**: *
· *Inflows were positive at +€7bn for the year: *business activity stayed solid, and the mix was positive for margins, with *inflows* *+€10bn* in the *Retail segment (excluding JV)* and *+€8bn **in **MLT Assets*.
· *Adjusted net income*^*6*^*,*^*7**was **€1.2bn: *high profitability was maintained, after a FY 2021 that enjoyed an exceptional level of performance fees; 2022 income is virtually stable compared to 2021 once this exceptional level is normalised.
· This performance was achieved in volatile and bearish markets: *equity markets*^*8** fell ** -**13% during the year, and fixed income markets*^*9** lost -17%.*
· As a result, *the open-ended fund market in Europe saw significant outflows **in 2022*, reflecting the rise in risk aversion from investors: -€57bn, including -€130bn on MLT assets and +€73bn on treasury products.
*Amundi is adapting with agility: *
· *Investment management* generated a *strong performance **in **2022*, across a wide range of asset classes, with 72%^10 of the Group's open-ended funds in the first or second quartile of their Morningstar^11 category for their one-year performance, specifically for equity (global, US, euro volatility) and emerging market strategies. This reflects the good anticipation of market movements, particularly the change in inflation, and the return of bonds, as well as the portfolios’ adaptation to the new environment;
· *The product range was also adapted:* the first half saw inflows of +€3bn in equities under active management, particularly in thematic products, whereas in the second half, the launches of Buy & Watch bond strategies generated inflows of +€2bn in the International networks and Third-Party Distribution; the adaptation of the structured product offering to match the new market environment (higher interest rates and flight to safety) meant Amundi could attract +€2.7bn, especially in the French and International Networks, thanks to new products (EMTN and formula funds);
· *Lastly, the cost base was reduced* *steadily *throughout the year, with lower adjusted operating expenses each quarter: from €429m in the fourth quarter of 2021 (including Lyxor) to €412m in the fourth quarter of 2022.
*Amundi **continues* *its development thanks to the **2025 **Ambition Plan* *growth drivers**:*
· *In 2022, **the **strengthening Amundi's leadership in asset management *led to a good performance: AuM in *Real Assets* totalled €67bn at end 2022 (+8% compared to end 2021, and double that of 2016), for inflows of +€4.1bn in 2022 (of which +€2bn in real estate, +€1.5bn in private equity) and investments of €1.6bn in private debt as part of the “France Relance” recovery plan. With inflows of +€13.8bn, *p**assive management* is beginning to benefit from business synergies with Lyxor, and the setup of the Irish platform ICAV to develop its global and US equity products will further accelerate this growth. As for *Asia*, total AuM were €378bn at end 2022, thanks to high inflows excluding China: +€26 bn, of which +€18bn in India, +€4.6bn in Japan and +€1.6bn in Korea.
· *Responsible Investing* solutions saw inflows of +€9bn^12 in 2022, with AuM at €800bn^13; the ranges continue to be adapted. Active management saw the *launch of **“Ambition **Net Zero**”** funds**, *contributing to the transition to a Net Zero economy, in four asset classes^14, in line with the ESG Ambition 2025 Plan’s objective to launch an Ambition Net Zero range covering all the major strategies. *In passive management*, the portion of funds replicating ESG indexes in the ETF range rose from 22% of the total range at end 2021 to 27% at end 2022, on track for the goal to reach 40% in 2025.
· *Amundi’s position as a **leading **supplier of technology and services all along the savings and investment value chain* draws on the *growth of Amundi Technology*. Revenues increased by +35% in 2022 over the previous year, thanks to the onboarding of eight new clients (47 at end 2022). Furthermore, the Alto suite was extended with the launch of Alto Sustainability, which offers external clients advanced portfolio analysis features according to Environmental, Social and Governance criteria, by incorporating the data of 25 potential suppliers based on each client's selection. To *enhance** the range of* *service**s* *offered by Amundi to *its Partner networks and third-party distributors to manage their open architecture, *Fund Channel*, Amundi’s fund distribution platform, continued to develop, reaching €381bn under distribution with +€62bn in new assets, including from major clients like ABN Amro Private Banking. In addition to this, the *subadvisory platform* Fund Channel Investment Partners, launched at the end of 2021, now has a range of 13 third-party managed funds, with +€1.3bn in inflows in 2022.
*Finally, t**he acquisition of Lyxor*, completed in 2021, fits well with *Amundi's **objective to execute **value-**cr**eative M&A transactions**.* Integration was completed in 2022, in less than nine months, the integrated platform is now operational, and the first synergies were achieved ahead of planning: one-third of cost synergies – about €20m for the year – and about one-quarter of revenue synergies were achieved. This acquisition makes Amundi a European leader in ETFs and enhances its active management offer, particularly in liquid alternatives.
1. *Financial year 2022*
*High profitability: adjusted net income*^*15**of €1.2bn*
*Solid business activity, with a favourable mix*
*Strong business activity in 2022*
*Amundi’s assets under management at 31 December 2022 totalled €1,904bn, *a decline of -7.7%, due to the *negative* *market **effect* (-€167bn), and despite *positive net inflows of +€7bn *for the year.
*The net inflows *break down into* +€7.8bn in Medium-Long Term (MLT) Assets *excluding joint ventures (JV), +€14.0bn for JVs, and net outflows of -€14.9bn in treasury products.
*In 2022, by **client **segment, Retail *saw inflows of *+€9.9bn, JVs +€14.0bn *and* Institutionals -€17.0bn.*
As regards *Retail clients*, the inflows were mainly in *MLT Assets, +€7.9bn,* driven by all segments except Amundi BOC WM:
· *French Networks* saw inflows of *+€1.4bn in MLT Assets*, but had outflows in treasury products (-€1.0bn); inflows on MLT Assets in the second half were primarily in structured products, but also real assets and index management;
· Inflows in *International Networks* amounted to *+€3.9bn*;
· *Amundi BOC WM *in China posted outflows of -€3.9bn, due to the maturities of funds launched in 2021 and to the local situation;
· *Third-Party Distribution* had an uneven year, with very high inflows in MLT Assets in the first half (+€13.8bn), then saw a risk-reduction movement in client portfolios in the second half, specifically in passive management, resulting in overall inflows of +€9.4bn for the year, of which +€6.5bn in MLT Assets.
*Institutional clients* saw inflows of *+**€**5.7**bn** in MLT assets excluding CA & SG Insurers*, thanks to the addition of several large mandates in index and multi-asset management. Outflows at CA & SG insurers (-€5.8bn) reflect the withdrawals in traditional life insurers (euro funds). Treasury products suffered net outlows (-€16.9bn), especially by Corporate clients over the first nine months of 2022.
Inflows at the *JVs* remained high in 2022, at *+€14.0bn*, despite continued outflows on Channel business^16 (-€5.3bn, after -€18.4bn in 2021) and an unfavourable economic climate in China. However, the JV in India, SBI MF, continued to win market shares, representing 17.7% of the open-ended fund market at end December 2022, with inflows of +€18bn over the full year.
*I**nflows in MLT Assets** excluding JVs**,** Amundi BOC WM and CA & SG Insurers* *over the year stood at +€17.5bn*, of which +€14.5bn in passive management and +€3.0bn in active management, structured products and Real and Alternative Assets. By areas of expertise, these figures reflect the following trends:
· Inflows in *active management* were driven by *Equities*, in particular in the first half of the year, and by *Bonds* in the second half*.*
· *Expertise in Real Assets* continued to grow, albeit offset by the *outflows in Alternatives *resulting from withdrawals on a few major contracts;
· *Structured Products* had an uneven year; outflows in the first half due to market conditions were subtanstially offset in the second half by the products’ strong momentum in the French and International networks.
· Lastly, inflows in *Passive management* came from several large index mandates with institutional clients and strong first-half inflows in Third Party Distribution
Overall, 2022 inflows show a *favourable mix for margins*, thanks to the better inflows in Retail and MLT Assets.
*High net income in 2022*
*Adjusted data*^*17*
*In 2022, adjusted net income*^*17** was €1,178m*, a -10.5% decline on adjusted net income published in 2021 and down -13% adjusted net income on a like-for-like basis^18, i.e. including Lyxor in 2021. This is largely due to the exceptional performance fees in 2021: €427m, compared to €171m in 2022, which represents a more normal level.
*By “normalising” the 2021 level of performance fees to the 2017-2020 average, 2022 adjusted net income was virtually stable **vs.** 2021, and down very slightly like-for-like*^*18**.*
These solid results in volatile bear markets were thanks to multiple factors.
*Net revenues*^*17** totalled €3,137m.*
· *Net management fees **remained** at a high level*: €2,965m, up by +7.6% compared to 2021 as reported, and stable like-for-like^18, thanks to the already mentioned improved business mix (Retail, MLT Assets); this offset the drop in AuM related to the market effect, with a slight improvement in the margin on average AuM, at 17.8 basis points in 2022 versus 17.5 in 2021 like-for-like^18;
· *Amundi Technology’s* revenues posted robust growth (+35% compared to 2021), at €48m;
· *Performance fees (€171m) *normalised in 2022 compared to 2021, as anticipated, but remained strong considering the bearish market environments, thanks to the successful adaptation of investment strategies.
To be noted: the decline in adjusted revenues like-for-like^18 (-8.2%) is almost entirely explained by the drop in performance fees between the two financial years.
*Operating e**xpenses*^*17** remained well under control*, at €1,671m, up +8.9% on 2021, but *down -1.1% like-for-like*^*18*. Investments and the unfavourable currency effect were absorbed by gains in productivity and the first synergies generated by the integration of Lyxor, which totalled some €20m in FY 2022. Synergies have been achieved earlier compared to the initial target that envisaged a minimum amount in 2022, an acceleration in 2024 and full achievement in 2024 (€60m in full year).
This cost control helped to contain the *cost/income ratio*^*17** to 53.3%*. The 2021 cost/income ratio^17 was 49.4% like-for-like, i.e. including Lyxor as of 2021, which was a much more positive market environment, and the exceptional performance fees, and 52.5% excluding this exceptional effect.
*Gross Operating Income (GOI)*^*17**was **at €1,466m*, down -12.2% from 2021 as reported, and -15.1% like-for-like^18.
*The contribution from equity-accounted entities*, which reflects Amundi's share in the net profits of the JVs in India, China, (ABC-CA), South Korea and Morocco, *rose +4.6% to €88m.*
*Accounting data*
Net accounting income group share stood at €1,074m and includes the costs of Lyxor’s integration on a full-year basis (-€46m after tax in 2022), the amortisation of an intangible asset (client contracts) also connected to the acquisition of Lyxor (-€10m after tax, starting in 2022), the amortisation of distribution agreements (stable compared to 2021, at €49m after tax).
Earnings per share was €5.28.
1. *Q4 2022*
*I**nflows **of €15bn*
*Adjusted*^*19** net income*^*20** of €303m (up +7.5% vs. Q3 2022)*
*Positive f**lows **despite **persistent client risk aversion*
*T**otal inflows **were **+€15**.0**bn*, driven by treasury products (+€20.8bn) and marginally positive MLT Assets (excl. JVs) (+€0.4bn). The high inflows in treasury products were mainly the result of the Corporates segment, evidence of their renewed attraction following the return to positive short-term rates.
In *Retail*, the *French and **International** networks* (excluding Amundi BOC WM) posted a solid quarter in *MLT assets*, with *+€2.6bn net** inflows*, specifically on structured products (France, Spain), real assets and index funds (France), and Buy & Watch bond funds (Italy). Third-Party Distributors were virtually flat, with arbitrages from riskier MLT asset classes to treasury products. Lastly, Amundi BOC WM recorded outflows in the fourth quarter (-€2.4bn).
In the *Institutional** client segment, inflows **in **Treasury products **were +€17.2bn*, driven by corporates, and inflows in MLT assets were +7.9bn€ excluding CA & SG Insurers, particularly in index and multi-assets, CA & SG insurers saw outflows (-€4.9bn), due to withdrawals from traditional life insurance (euro funds);
The *JVs *had *outflows of -€6.2bn*, driven by China (ABC -CA): -€6.7bn, of which -€1.7bn in the Channel Business.. In other JVs, inflows continued to be positive in India (+€2.5bn), but South Korea (JV with NH group) experienced outflows in Treasury products and posted net ouflows.
*Rising f**ourth-quarter profitability *
*Adjusted data*^*20*
*In the fourth quarter of 2022**, Amundi’s adjusted net income was €303m,* *rising **+7.5% quarter-on-quarter**, *thanks to increased net revenues and sustained operational efficiency.
*Net revenues*^*20* were up *+4.2% compared to the third quarter of 2022*:
· *Net management fees *presented a moderate decline by -3.6% to €720m;
· *Performance fees* *were high*, at €63m compared to €13m in the third quarter of 2022, benefiting from the seasonal effect of the funds’ anniversary dates on which performance fees are calculated (higher concentration in the fourth quarter) and the good investment performance across a wide range of strategies in 2022;
· Finally, *Amundi Technology revenues* grew by +22% compared to the third quarter of 2022, to €15m.
*Operating expenses*^*20** were down by ** -**0.7% from the third quarter, to €412m,* the third quarter of decline since the acquisition of Lyxor in the first quarter, stemming primarily from cost synergies related to the integration as well as the adjustment of expenses to the market backdrop.
As a consequence of the positive jaws effect between the two quarters, the *co**st/income ratio improved by 2.6* *percentage points compared to the third quarter of 2022, to 52.1%. *This improvement was largely driven by solid performance fees and Lyxor synergies in the fourth quarter.
*Gross operating income*^*20**rose** +10.2% compared to the third quarter.*
The contribution from *equity-accounted entities (JVs) stood at €24m* in the fourth quarter of 2022, up +3.8% on the third quarter.
*Accounting data*
Net accounting income group share stood at €286m and includes costs related to the Lyxor integration ( -€2m after tax in Q4 2022), amortisation of the intangible asset (client contracts) related to Lyxor ( -€2.5m after tax) and the usual amortisation of distribution agreements (-€12.2m after tax).
1. *A solid financial structure and **stable **dividend** vs. 2021*
*Amundi’s** financial structure remain**s** solid**.* At the end of 2022, tangible equity^21 stood at €3.9bn, compared to €3.5bn at end 2021. The CET1^22 ratio was 19.1%, well above regulatory requirements and an increase on end 2021 (16.1%), which already included Lyxor on the balance sheet and in solvency calculations.
As a reminder, in May 2022, rating agency Fitch reiterated Amundi’s A+ rating with a stable outlook, the best in the sector.
*T**he Board of Directors **will **propose **to **the General Meeting to be held on 12 May 2023* *a** dividend of €4.10 per share, in cash, stable **compared to **the dividend paid for FY 2021.*
This dividend represents a payout ratio of 75% net income, Group share^23 and a 6.6% dividend yield based on the share price at 6 February 2023 (closing price of €62.45).
Shares shall be designated ex-dividend on 22 May 2023 and the dividend will be paid out as of 24 May 2023.
Since the listing, TSR^24 (total shareholder return) stands at 81%.
***
*Financial disclosure schedule*
· Publication of Q1 2023 results: 28 April 2023
· AGM for the 2022 financial year: 12 May 2023
· Publication of H1 2023 results: 28 July 2023
· Publication of 9M 2023 results: 27 October 2023
*Dividend distribution calendar*
· Detachment: Monday 22 May 2023
· Payout: as from Wednesday 24 May 2023
***
*APPENDICES*
*Full year income statement*
€m *2022 * *2021 * *Δ 2022 *
*/ 2021** reported* *Δ 2022 *
*/ 2021** combined*
Adjusted net revenue^*25* 3,137 3,204 -2.1% -8.2%
Net asset management revenue 3,136 3,184 -1.5% -7.7%
o/w net management fees 2,965 2,757 +7.6% +0.2%
o/w performance fees 171 427 -59.9% -61.2%
Technology 48 36 +35.3% +35.3%
Net financial income and other net income^*25* (48) (15) NM NM
Operating expenses^*25* (1,671) (1,534) +8.9% -1.1%
Adjusted gross operating income^*25* 1,466 1,670 -12.2% -15.1%
Adjusted cost/income ratio 53.3% 47.9% +5.4pts +3.8pts
Cost of risk & Other (8) (12) -34.0% -43.8%
Equity-accounted entities 88 84 +4.6% +4.6%
Adjusted income before taxes^*25* 1,546 1,742 -11.2% -14.0%
Corporate tax^*25* (368) (430) -14.5% -17.5%
Minority interests 3 NM NM
Adjusted net income, Group share^*25* 1,178 1,315 -10.5% -13.1%
Amortisation of intangible assets after tax (59) (49) +20.5% +20.5%
Integration costs net of tax (46) (12) NM NM
Affrancamento impact^26 - 114 NM NM
Net income, Group share including Affrancamento 1,074 1,369 -21.6% -23.8%
*Net accounting income per share (EPS) (€)* 5.28 6.75 -21.8%
*Adjusted EPS*^*25** (€)* 5.79 6.49 -10.8%
*Quarterly income statement*
€m *Q4 2022* *Q3 2022* *Δ Q4 *
*/ Q3* *Q4 2021* *Δ Q4 *
*/ Q4** reported* *Δ Q4 *
*/ Q4** combined*
Adjusted net revenue^*27* 790 758 +4.2% 794 -0.4% -7.2%
Net asset management revenue 783 759 +3.1% 789 -0.8% -7.6%
o/w net management fees 720 747 -3.6% 719 +0.1% -6.6%
o/w performance fees 63 13 NM 70 -10.1% -17.9%
Technology 15 12 +21.8% 9 +70.0% +70.0%
Net financial income and other net income^*25* (7) (13) NM (4) +80.5% +55.5%
Operating expenses^*25* (412) (415) -0.7% (388) +6.3% -3.9%
Adjusted gross operating income^*25* 378 343 +10.2% 406 -6.9% -10.5%
Adjusted cost/income ratio 52.1% 54.7% -2.6pts 48.8% +3.3pts +1.8 pts
Cost of risk & Other (4) (0) NM 1 NM NM
Equity-accounted entities 24 23 +3.8% 21 +12.4% +12.5%
Adjusted income before taxes^*25* 398 366 +8.6% 429 -7.1% -10.5%
Corporate tax^*25* (96) (85) +12.3% (99) -3.1% -7.4%
Minority interests -18.4% (1) NM NM
Adjusted net income, Group share^*25* 303 282 +7.5% 328 -7.8% -10.9%
Amortisation of intangible assets after tax (15) (15) 0.0% (12) +20.5% +20.5%
Integration costs net of tax (2) (6) NM (12) -85.5% -85.5%
Affrancamento impact^28 - - NM - NM NM
Net income, Group share including Affrancamento 286 261 +9.9% 304 -5.9% -9.4%
*Change in asset**s under management from end-2019** to end-2022*
*(€bn)* *Assets under *
*management* *Net*
*inflows* *Market and*
*forex effect* *Scope*
* effect* *Change in AuM vs. previous quarter*
As of 31/12/2019 1,653 +5.8%
Q1 2020 -3.2 - 122.7 /
As of 31/03/2020 1,527 -7.6%
Q2 2020 -0.8 +64.9 /
As of 30/06/2020 1,592 +4.2%
Q3 2020 +34.7 +15.2 +20.7^29
As of 30/09/2020 1,662 +4.4%
Q4 2020 +14.4 +52.1 /
As of 31/12/2020 1,729 +4.0%
Q1 2021 -12.7 +39.3 /
As of 31/03/2021 1,755 +1.5%
Q2 2021 +7.2 +31.4 /
As of 30/06/2021 1,794 / +2.2%
Q3 2021 +0.2 +17.0 /
As of 30/09/2021 1,811 / +1.0%
*Q4* *2021* *+65.6* *+39.1*
*As of 31/12/2021* *2,064* *+148*^*30* *+14%*
Q1 2022 +3.2 ? /
As of 31/03/2022 2,021 -2.1%
Q2 2022 +1.8 ? /
As of 30/06/2022 1,925 -4.8%
Q3 2022 -12.9 ?
As of 30/09/2022 1,895 -1.6%
*Q4* *2022* *+15.0* *?* */*
*As of 31/12/2022* *1,904* *+0.5%*
*Total (2022):*
· Net inflows +€7.0bn
· Market and forex effects -€167bn
*Breakdown of AuM and net inflows by client segment*^*31*
AuM AuM % chg. Inflows Inflows Inflows Inflows
(bn€) 31.12.2022 31.12.2021 /31.12.2021 Q4 2022 Q4 2021 2022 2021
French networks *119* *128* *-7**.**5%* *+2**.**2* *+3**.**6* *+0**.**4* *+0**.**9*
International networks 156 174 -10.3% -1.2 +5.1 +0.1 +18.9
o/w Amundi BOC WM 7 11 -36.3% -2.4 +3.3 -3.9 +10.1
Third-party distributors 287 324 -11.3% -0.1 +11.3 +9.4 +23.6
*Retail (excl. JVs)* *562* *626* *-10**.**3%* *+0**.**9* *+19**.**9* *+9**.**9* *+43**.**5*
Institutionals^32 & sovereigns *453* *486* *-6**.**9%* *+7**.**3* *+5**.**5* *-8**.**2* *+0**.**4*
Corporates 102 108 -5.3% +18.2 +14.9 -2.4 +3.3
Employee Savings 76 78 -2.9% -0.6 +0.1 +1.2 +2.5
CA & SG insurers 415 479 -13.2% -4.7 -0.3 -7.7 -0.8
*Institutionals* *1**,**046* *1**,**151* *-9**.**1%* *+20**.**2* *+20**.**2* *-17**.*** *+5**.**4*
*JVs* *296* *286* *+3**.**2%* *-6**.**2* *+25**.**5* *+14**.*** *+11**.**4*
*TOTAL* *1**,**904* *2**,**064* *-7**.**7%* *+15**.*** *+65**.**6* *+7**.*** *+60**.**2*
*Breakdown of AuM and net inflows by asset class*^*31*
AuM AuM % chg. Inflows Inflows Inflows Inflows
(bn€) 31.12.2022 31.12.2021 /31.12.2021 Q4 2022 Q4 2021 2022 2021
Equities 406 447 -9.1% +4.4 +9.7 +13.4 +22.8
Multi-asset 286 330 -13.2% -3.4 +11.6 -2.8 +38.0
Bonds 605 679 -10.9% -1.6 +8.2 -3.0 +14.9
Real, alternative and structured assets 125 121 3.2% +0.9 -0.5 +0.1 -0.2
*MLT ASSETS excl. JVs* *1**,**423 * *1**,**577 * *-9**.**8%* *+0**.**4* *+29**.*** *+7**.**8* *+75**.**5*
Treasury Products excl. JVs 185 200 -7.4% +20.8 +11.1 -14.9 -26.6
*ASSETS excl. JVs* *1**,**608 * *1**,**777 * *-9**.**5%* *+21**.**1* *+40**.**1* *-7**.**1* *+48**.**8*
JVs 296 286 3.2% -6.2 +25.5 +14.0 +11.4
*TOTAL* *1,904 * *2?064 * *-7.7%* *15.0* *+65.6* *+7.0* *+60.2*
*o/w MLT assets* *1,689 * *1,830 * *-7.7%* *-3.9* *+51.7* *+26.3* *+83.6*
*o/w Treasury products* *215 * *234 * *-8.3%* *+18.9* *+13.9* *-19.3* *-23.4*
*Breakdown of AuM and net inflows by geographic segment*^*31*
AuM AuM % chg. Inflows Inflows Inflows Inflows
(bn€) 31.12.2022 31.12.2021 /31.12.2021 Q4 2022 Q4 2021 2022 2021
France 877 999 -12.2% +7.0 +10.1 -23.0 -16.0
Italy 194 215 -9.7% +1.8 +5.2 +8.1 +12.0
Europe excl. France & Italy 334 347 -3.7% +14.6 +15.0 +13.4 +31.7
Asia 378 372 1.5% -6.8 +33.7 +16.5 +30.4
Rest of world^33 121 130 -7.2% -1.6 +1.6 -8.0 +2.0
*TOTAL* *1,**904* *2,**064* *-7**.**7%* *+15**.*** *+65**.**6* *+7**.*** *+60**.**2*
*TOTAL excl. France * *1,**027* *1,**064* *-3**.**5%* *+8**.*** *+55**.**5* *+30**.*** *+76**.**2*
*Methodology appendix*
I. *Accounting and adjusted data*
· *Accounting data*: In 12M 2021 and 2022, data after amortisation of intangible assets (see below); in 2021, costs associated with the integration of Lyxor in Q4 (€12m after tax and €16m before tax) and the impact of Affrancamento^34 (€114m net of tax costs in Q2); in 2022 the integration costs of Lyxor (€46m after tax and €62m before tax, including in Q4 €1.7m after tax and €2.3m before tax).
· *Adjusted data**: *the following adjustments were made to present the most economically accurate income statement: restatement of the amortisation of intangible assets deducted from net revenues (distribution agreements with Bawag, UniCredit and Banco Sabadell, the intangible asset representing Lyxor client contracts); integration costs related to Lyxor; impact of Affrancamento in 2021.
*In the accounting data, amortisation of distribution agreements** and **the intangible asset, representing Lyxor client contracts**:*
· Q4 2022: €20m before tax and €15m after tax; Q4 2021: €17m before tax and €12m after tax
· 12M 2022: €82m before tax and €59m after tax; 12M 2021: €68m before tax and €49m after tax
II. *Normalised data*
· In 2021, a record amount of performance fees had been registered (427M€). This amount is significantly higher than the average from 2017 to 2020 (i.e. approx. €170m per year).To compare the 2022 data with 2021, Amundi computes a normalized amount of performance fees with those amount historically recorded, though excluding the performance fees impact. Details in the IAP table on the next page
III. *Acquisition of Lyxor*
· In accordance with IFRS 3, recognition on Amundi’s balance sheet as of 31/12/2021 of:
· goodwill in the amount of €652m;
· an intangible asset, representing client contracts, of €40m before tax (€30m after tax), which will be amortised on a straight-line basis over 3 years;
· In the Group income statement, the above-mentioned intangible asset will be amortised on a straight-line basis over 3 years starting in 2022; the full-year impact of this amortisation will be €10m net of tax (i.e. €13m before tax). This amortisation will be recognised as a deduction from net income and is added to the existing amortisation of distribution agreements.
· €77m of *integration costs* before tax have been booked, of which €16m before tax booked in Q4 2021 and €62m in 2022 (see above).
IV. *Alternative Performance Indicators*^35
To present the most economically accurate income statement, Amundi publishes adjusted data which excludes amortisation of intangible assets and the impact of Affrancamento (see above).
These adjusted and normalised data are reconciled with accounting data as follows:
= accounting data
= adjusted data
= adjusted and normalised data
*(€m)* *2022* *2021* *Q4 2022* *Q3 2022* *Q4 2021*
*Net revenues (a)* *3056* *3136* *770* *738* *777*
+ Amortisation of distribution contract 82 68 20 20 17
*Net revenues excl. amort. of distribution contracts (b)* *3137* *3204* *790* *758* *794*
- Exceptional performance fees -261 -29
*Net revenues excl. amort. of distribution contracts (c)* *3137* *2944* *790* *758* *765*
*Operating expenses (d)* *-1733* *-1550* *-414* *-423* *-404*
+ Integration costs 62 16 2 9 16
*Operating expenses (e)* *-1671* *-1534* *-412* *-415* *-388*
- Additional costs linked to exceptional performance fees 44 5
*Operating expenses (f)* *-1671* *-1490* *-412* *-415* *-383*
*GOP (g) = (a) + (d)* *1323* *1586* *356* *314* *373*
*Adjusted GOP (h) = (b) + ( e)* *1466* *1670* *378* *343* *406*
*Normalised GOP (i) = ( c) + (f)* *1466* *1454* *378* *343* *382*
Cost income ratio (d) / (a) 56.7% 49.4% 53.8% 57.4% 52.0%
Adjusted Cost income ratio ( e) / (b) 53.3% 47.9% 52.1% 54.7% 48.8%
Normalized and adjusted Cost income ratio (f) / ( c) 53.3% 50.6% 52.1% 54.7% 50.0%
Risk costs and provisions (j) -8 -12 -4 1
Share of net income of equity-accounted entities (k) 88 84 24 23 21
*Profit before tax (l) = (g) + (j) + (k)* *1403* *1658* *375* *337* *396*
*Adjusted Profit before tax (m) = (h) + (j) + (k)* *1546* *1742* *398* *366* *429*
*Normalized and adjusted Profit before tax (n) = (i) + (j) + (k)* *1546* *1526* *398* *366* *405*
Income tax (o) -329 -292 -89 -77 -90
Adjusted Income tax (p) -368 -430 -96 -85 -99
Normalized & Adjusted Income tax (q) -368 -371 -96 -85 -92
Non controlling interest ( r) 3 -1
*Net income group share (s) = (l)+(o)+(r)-(v) * *1074* *1255* *286* *261* *304*
*Adjusted Net Income, Group share (t) = (m)+(p)+(r)-(v)* *1178* *1315* *303* *281* *328*
*Normalized and Adjusted Net Income (u) = (n)+(q)+(r)-(v)* *1178* *1158* *303* *281* *311*
Affrancamento impact (v) 114
*Net Income group share ( s) + (v) including Affrancamento* *1074* *1369* *286* *261* *304*
*Shareholder structure* *31 December 2020* *31 December 2021* *31 December 2022* Number of
shares Number of
shares Number of
shares %
of capital Number of
shares %
of capital
Crédit Agricole Group 141,057,399 141,057,399 141,057,399 69.7 % 141,057,399 69.2 %
Employees 1,234,601 1,527,064 1,527,064 0.6 % 2,279,907 1.1 %
Treasury shares 685,055 255,745 255,745 0.3 % 1,343,479 0.7 %
Free float 59,608,898 60,234,443 60,234,443 29.4 % 59,179,346 29.0 %
*Number of shares at end of period* *202,585,953* *203,074,651* *203,074,651* *100.0 %* *203,860,131* *100.0 %*
Average number of shares for the period 202,215,270 202,793,482 202,793,482 / 203,146,058 /
· Employee ownership increased due to the capital increase reserved for employees on 27 July 2022 (0.5 million shares created).
· Average number of shares on a pro-rata basis
*About Amundi*
Amundi, the leading European asset manager, ranking among the top 10 global players^36, offers its 100 million clients - retail, institutional and corporate - a complete range of savings and investment solutions in active and passive management, in traditional or real assets. This offering is enhanced with IT tools and services to cover the entire savings value chain. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages more than €1.9 trillion of assets^37.
With its six international investment hubs^38, financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.
Amundi clients benefit from the expertise and advice of 5,400 employees in 35 countries.
*Amundi, a trusted partner, working every day in the interest of its clients and society.*
*Press contact: ** *
*Natacha Andermahr *
Tel. +33 1 76 37 86 05
natacha.andermahr@amundi.com
*Investor contacts:*
*Cyril Meilland, CFA*
Tel. +33 1 76 32 62 67
cyril.meilland@amundi.com
*Thomas Lapeyre*
Tel. +33 1 76 33 70 54
thomas.lapeyre@amundi.com
*DISCLAIMER: *
This document may contain projections concerning Amundi's financial situation and results.
The figures provided do not constitute a “forecast” as defined in Commission Delegated Regulation (EU) 2019/980.
This information is based on scenarios that employ a number of economic assumptions in a given competitive and regulatory context. As such, the projections and results indicated may not necessarily come to pass due to unforeseeable circumstances. The reader should take all of these uncertainties and risks into consideration before forming their own opinion.
The figures presented were prepared in accordance with IFRS guidelines as adopted by the European Union. Data including Lyxor in 2021, before the integration in the accounts as from 1 January 2022, (with assumptions about the restatement of certain activities retained by SG).
The information contained in this presentation, to the extent that it relates to parties other than Amundi or comes from external sources, has not been verified by a supervisory authority, 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 decision made, negligence or loss that may result from the use of this presentation or its contents, or anything related to them, or any document or information to which the presentation may refer.
--------------------
^1 Net income, Group share
^2Adjusted data: excluding amortisation of the intangible assets, the integration costs related to Lyxor and, in 2021, the impact of Affrancamento (see note on p. 11).
^3Source Morningstar, European open-ended funds, cross-border and domestic
^4 Constant scope: including Lyxor in 2021
^5 CET 1: Common Equity Tier 1
^6 Net income, Group share
^7Adjusted data: excluding amortisation of the intangible assets, the integration costs related to Lyxor, and, in 2021, the impact of Affrancamento (see note on p. 11).
^8 EuroStoxx 600
^9 Bloomberg Euro Aggregate Index
^10As a percentage of the assets under management
^11There were 1,184 Morningstar-rated open-ended Amundi funds at the end of December 2022. © 2022 Morningstar. All rights reserved.
^12 Excluding treasury products and CA & SG Insurers
^13 €799.7bn
^14 Real estate, multi-asset, developed market bonds, developed market equities
^15 Adjusted data: excluding amortisation of the intangible assets, the integration costs related to Lyxor and, in 2021, the impact of Affrancamento (see note on p. 11)
^16 Run-off, low-margin products, in China
^17Adjusted data: excluding amortisation of the intangible assets, the integration costs related to Lyxor, and the impact of Affrancamento, (see note on p. 11)
^18 Constant scope: including Lyxor in 2021
^19Net income, Group share
^20Adjusted data: excluding amortisation of the intangible assets, the integration costs related to Lyxor, and, in 2021, the impact of Affrancamento (see note on p. 11)
^21 Equity excluding goodwill and intangible assets
^22 CET 1: Common Equity Tier 1
^23 The dividend payout ratio is calculated on the basis of the adjusted net income, Group share (€1,074m), and excluding the integration costs related to Lyxor (-€46m after tax)
^24 TSR (Total Shareholder Return) includes: share price increase + dividends paid out from 2016 to 2022 + dividend submitted to the 2023 GM + Detached Preferential Subscription Right in May 2017. Data with closing price at 06/02/2023
^25Adjusted data: excluding amortisation of the intangible assets, the integration costs related to Lyxor and, in 2021, the impact of Affrancamento. See note on page 11 for definitions and methodology..
^26Net accounting income for 2021 includes a non-recurring tax gain (net of a substitution tax) of +€114m (no cash flow impact) under the “Affrancamento” mechanism pursuant to the 2021 Italian Budget Act (Law No. 178/2020), resulting in the recognition of Deferred Tax Assets on intangible assets (goodwill)); this was excluded from Adjusted Net Income.
^27Adjusted data: excluding amortisation of the intangible assets, the integration costs related to Lyxor and, in 2021, the impact of Affrancamento. See note on page 11 for definitions and methodology..
^28Net accounting income for 2021 includes a non-recurring tax gain (net of a substitution tax) of +€114m (no cash flow impact) under the “Affrancamento” mechanism pursuant to the 2021 Italian Budget Act (Law No. 178/2020), resulting in the recognition of Deferred Tax Assets on intangible assets (goodwill)); this was excluded from Adjusted Net Income.
^29 Sabadell AM
^30 Lyxor, consolidated as of 31/12/2021
^31AuM (including Lyxor as from 31.12.2021) and inflows (including Lyxor in 2022) encompass assets under advisory and assets sold and take into account 100% of the Asian JVs’ inflows and assets under management. For Wafa in Morocco, assets are reported on a proportional consolidation basis.
^32 Including funds of funds
^33 Primarily United States
^34“Affrancamento” mechanism of the 2021 Italian Budget Act (Law no. 178/2020), resulting in the recognition of Deferred Tax Assets on intangible assets (goodwill); this was excluded from Adjusted Net Income.
^35 Please refer to section 4.3 of the 2021 Universal Registration Document filed with the French AMF on 12/04/2022
^36 Source: IPE “Top 500 Asset Managers” published in June 2022, based on assets under management as at 31/12/2021
^37 Amundi data as at 31/12/2022
^38 Boston, Dublin, London, Milan, Paris and Tokyo
*Attachment*
· Amundi Q4-2022 Results-PR_EN