Impax Asset Management : results for the year ended 30 September 2017

Impax Asset Management Group plc - Results for the year ended 30 September 2017

London, 29 November 2017 - Impax Asset Management Group plc ("Impax" or the "Company"), the AIM quoted investment manager focused on investments that are set to benefit from the transition to a more sustainable global economy, today reports final audited results for the year ending 30 September 2017 (the "Period").

Business update for the Period

• Assets under management and advice ("AUM") increased 61% to a new peak of £7.3 billion (2016: £4.5 billion), rising further to £7.6 billion by 31 October 2017

• Record net inflows of £2.1 billion across several strategies and geographies

• Principal Listed Equity strategies continue to extend their strong performance record, outperforming the global benchmark (MSCI All Country World Index) over one, three and five years

• Strong progress with fundraising and first investments for third renewable energy private equity fund

• Acquisition of Pax World Management LLC ("Pax"), announced 18 September 2017, and expected to complete in the first quarter of 2018. The acquisition should extend Impax's position as a leading specialist investment manager focused on the transition to a more sustainable global economy.

  Financial performance

• Revenue: £32.7 million (2016: £21.1 million)

• Operating Earnings: £7.9 million (2016: £4.2 million)

• Profit before tax: £5.9 million (2016: £5.2 million)

• Shareholders' equity: £35.6 million (2016: £26.7 million)

• Proposed final dividend: 2.2 pence per share, if approved, total dividend for the year would be 2.9 pence per share (2016 full year: 2.1 pence per share).

Keith Falconer, Chairman, commented:

"During the Period, Impax saw the strongest growth since its inception in 1998. We can celebrate

many successes across the business, and I am pleased to report excellent progress against all

our Key Performance Indicators, including significant increases in profitability, earnings per share

and dividend for the year."

Ian Simm, Chief Executive added:

"Impax has had an outstanding year. Over the Period we extended our strong track record of investment outperformance for our three largest listed equity strategies and secured a four-fold increase in net inflows compared to financial year 2016. Our acquisition of Pax World Management will diversify our global business and should enhance Impax's earnings per share significantly in 2018 and beyond."

Enquiries:

Ian Simm Tel: + 44 (0) 20 7434 1122 (switchboard) Chief Executive

Impax Asset Management Group plc www.impaxam.com

Anne Gilding Tel: [phone] (switchboard)

Head of Brand & Communications Tel: [phone] (direct)

Impax Asset Management Group plc Tel: [phone] (mobile)

www.impaxam.com Email: [e-mail]

Guy Wiehahn Tel: [phone]

Nominated Adviser Peel Hunt LLP

Notes to Editors - About Impax Asset Management

Impax Asset Management is a leading investment management firm, managing approximately

£7.6bn* primarily for institutional clients through both listed and private equity strategies.

The Company's investments are based on a strong conviction that population dynamics, resource scarcity, inadequate infrastructure and environmental constraints will profoundly shape global markets, creating investment risks and opportunities. These trends, reflecting the transition towards a more sustainable global economy, are likely to drive earnings growth for well- positioned companies. Impax's proprietary investment framework identifies and calibrates the rising risks and expanding opportunities from this transition, and guides the search for investments that are well placed to deliver long term outperformance.

*Assets under management and advice as of 31 October 2017

Issued in the UK by Impax Asset Management Group plc, whose shares are quoted on AIM. Impax Asset Management Group plc is registered in England & Wales, number 03262305. AUM relates to Impax Asset Management Limited and Impax Asset Management (AIFM) Limited. Both companies are authorised and regulated by the Financial Conduct Authority and are wholly owned subsidiaries of Impax Asset Management Group plc. Please note that the information provided and links from it should not be relied upon for investment purposes. For further information please visit www.impaxam.com.

Chairman's introduction

Last year Impax Asset Management Group plc ("Impax", the Group or the "Company") saw the strongest growth since its inception in 1998. Thanks to the hard work and commitment of our staff we have celebrated many successes across the business, and I'm pleased to report excellent progress against all our Key Performance Indicators, including significant increases in profitability, earnings per share and dividend for the year.

During the 12 months to 30 September 2017, Impax has delivered significant organic growth with unprecedented levels of inflows across our listed equity strategies, from both Impax labelled products and from those sold by our distribution partners around the world. We have also considerably advanced the fundraising for our private equity infrastructure business.

On 18 September 2017, Impax announced the agreement to acquire Pax World Management LLC ("Pax"). The strategic rationale for combining the two companies is compelling and will create the leading investment manager focused on the transition to a more sustainable global economy.

We continue to see intensifying interest in our services from asset owners seeking exposure to the rapidly growing markets in which Impax invests. Although lower cost, passive investing is gaining traction, there is a strong demand for specialist investment managers offering clearly differentiated products and services. Impax is well placed to deliver long term growth in this environment and the acquisition of Pax will enhance our position.

The Board and the executive team are excited by the many opportunities that lie ahead. We look forward to working with new colleagues to build our global business further with the aim of delivering future value for all our stakeholders.

J Keith R Falconer 28 November, 2017

Chief Executive's report

As Impax approaches its twentieth anniversary, I am delighted to report on a year of exceptional growth in assets, strong investment performance and the attainment of several notable milestones, culminating in the announcement on 18 September 2017 of our planned acquisition of Pax World Management LLC ("Pax").

During the twelve months ending 30 September 2017 (the "Period"), Impax's assets under discretionary and advisory management ("AUM") increased by 61 per cent to reach £7.3 billion, a new high for the Company. By 31 October 2017, AUM had grown further to £7.6 billion. On the back of this expansion, we have also achieved a significant increase in revenue, profit and the value of shareholder equity; these are described further in the Financial review.

Impax was one of the first investment managers to identify the compelling investment opportunities arising from the transition to a more sustainable economy. Back in the late 1990s, environmental markets were relatively small and our investee companies often represented risky investments. Nearly two decades later, our investment expertise is yielding insights across large swathes of private sector activity, and our long track record and large team have proved attractive for asset owners seeking to gain exposure.

Developments in the investment management sector

The investment management sector is undergoing a period of significant external scrutiny and as a result is having to evolve rapidly. Generalist investment managers are under pressure to justify or lower fees as cheap investment vehicles wrapping passively managed strategies continue to gain market share. In parallel, the unprecedented volume of complex regulatory change is increasing the cost of doing business and highlighting the importance of having the necessary expertise to respond appropriately.

Against this backdrop, Impax remains well positioned, with significant scale and a differentiated product range. Over the past 12 months we have made a number of investments in systems and taken expert advice in readiness for compliance with the requirements of MiFID II. Looking ahead to 2018, we will be conducting a formal review of our governance framework and oversight model to ensure we comply with the Financial Conduct Authority's Senior Managers & Certification Regime.

There is still uncertainty around the impact on investment managers of the UK's expected departure from the European Union. However, with a well-established set of relationships across the EU and extensive experience of working within local regulatory frameworks, we are confident in our ability to adapt our service delivery and processes in order to thrive despite any untoward implications of Brexit.

Our investment opportunity

In previous reports I have written extensively about the evolution of the markets in which Impax seeks investment. During 2017, the drivers behind the companies in which we have taken a financial stake have strengthened further, and future prospects remain excellent.

This year we have seen important policy developments across the global automotive industry and many manufacturers announcing further hybridisation or full electrification of their fleets.

Following similar announcements in France and Norway, and not long after losing a High Court case over failure to meet EU standards on air pollution in cities, the UK government published plans to ban petrol and diesel vehicle sales by 2040. In parallel, China looks set to announce its intention to cease production of diesel vehicles by 2030, and India has showed signs of following suit.