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Invesco Reports Results for Three Months Ended December 31, 2012

       Invesco Reports Results for Three Months Ended December 31, 2012

Continued strong, long-term investment performance

Adjusted operating income increased 10.4%

Total shareholder return of capital of $554 million during 2012

PR Newswire

ATLANTA, Jan. 31, 2013

ATLANTA, Jan. 31, 2013 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported
financial results for the three months and year ended December 31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20121024/CL98700LOGO )

"Invesco's focus on delivering strong, long-term investment performance to our
clients contributed to a 10.4% increase in operating income for the quarter,"
said Martin L. Flanagan, president and CEO of Invesco. "During 2012, we
continued to make progress against our strategic objectives, while further
investing in the business for long-term success. Reflecting continued
confidence in the fundamentals of our business, we raised our dividend early
in 2012 and returned in excess of $550 million to shareholders during the
year."

                                              Q4-12 vs.            Q4-12 vs.
                        Q4-12      Q3-12      Q3-12      Q4-11     Q4-11
Adjusted Financial
Measures^(1)
Net revenues            $775.9m    $734.7m    5.6    %   $716.8m   8.2     %
Operating income        $276.5m    $250.4m    10.4   %   $256.3m   7.9     %
Operating margin        35.6   %   34.1   %              35.8   %
Net income attributable
to common
shareholders            $202.6m    $188.4m    7.5    %   $190.5m   6.4     %
Diluted EPS             $0.45      $0.42      7.1    %   $0.42     7.1     %
U.S. GAAP Financial
Measures
Operating revenues      $1,092.9m  $1,041.4m  4.9    %   $997.1m   9.6     %
Operating income        $222.8m    $216.0m    3.1    %   $211.6m   5.3     %
Operating margin        20.4   %   20.7   %              21.2   %
Net income attributable
to common
shareholders            $158.7m    $170.6m    (7.0)  %   $202.3m   (21.6)  %
Diluted EPS             $0.35      $0.38      (7.9)  %   $0.44     (20.5)  %
Assets Under Management
Ending AUM              $687.7bn   $683.0bn   0.7    %   $625.3bn  10.0    %
Average AUM             $680.2bn   $667.9bn   1.8    %   $621.7bn  9.4     %

(1) The adjusted financial measures are all non-GAAP financial measures. See
the information on pages 12 through 16 for a reconciliation to their most
directly comparable U.S. GAAP measures and the notes beginning on page 23 for
other important disclosures.

                                              2012       2011       % Change
Adjusted Financial Measures^(1)
Net revenues                                  $2,959.0m  $2,898.4m  2.1    %
Operating income                              $1,045.1m  $1,068.9m  (2.2)  %
Operating margin                              35.3   %   36.9   %
Net income attributable to common
shareholders                                  $776.7m    $781.6m    (0.6)  %
Diluted EPS                                   1.71       1.68       1.8    %
U.S. GAAP Financial Measures
Operating revenues                            $4,177.0m  $4,092.2m  2.1    %
Operating income                              $871.5m    $898.1m    (3.0)  %
Operating margin                              20.9   %   21.9   %
Net income attributable to common
shareholders                                  $677.1m    $729.7m    (7.2)  %
Diluted EPS                                   1.49       1.57       (5.1)  %
Assets Under Management
Ending AUM                                    $687.7bn   $625.3bn   10.0   %
Average AUM                                   $664.4bn   $634.3bn   4.7    %

(1) The adjusted financial measures are all non-GAAP financial measures. See
the information on pages 12 through 16 for a reconciliation to their most
directly comparable U.S. GAAP measures and the notes beginning on page 23 for
other important disclosures.

Assets Under Management

Total assets under management (AUM) at December 31, 2012 were $687.7 billion
(September 30, 2012: $683.0 billion), an increase of $4.7 billion during the
fourth quarter. Total net inflows were $1.0 billion for the fourth quarter as
detailed below. Long-term net flows during the fourth quarter include a $1.6
billion outflow related to a CDO maturity.

                         Quarterly                Year-to-date
Summary of net flows
(in billions)            Q4-12   Q3-12   Q4-11    Dec 31, 2012  Dec 31, 2011
Active                   $1.8    $3.6    ($0.2)   $1.3          $1.7
Passive                  (0.9)   5.8     5.8      11.1          17.5
Long-term net flows      0.9     9.4     5.6      12.4          19.2
Money market             0.1     2.3     0.4      0.1           5.3
Total net flows          $1.0    $11.7   $6.0     $12.5         $24.5

Net market gains led to a $4.9 billion increase in AUM during the fourth
quarter, compared to a $22.1 billion increase in the third quarter 2012.
Foreign exchange rate movements led to a $1.2 billion decrease in AUM during
the fourth quarter, compared to a $4.3 billion increase in the third quarter
2012.

Average AUM during the fourth quarter were $680.2 billion, compared to $667.9
billion for the third quarter 2012, a 1.8% increase. Further analysis is
included in the supplementary schedules to this release.

Earnings Summary

The company is presenting both U.S. GAAP earnings information and non-GAAP
earnings information in this release. The company believes that the additional
disclosure of non-GAAP earnings, as described more fully in the Form 10-K for
the year ended December 31, 2011, provides further transparency into the
business and allows more appropriate comparisons with our industry peers.
Management uses these non-GAAP performance measures to evaluate the business,
and they are consistent with internal management reporting.

Non-GAAP Earnings

This section discusses the company's fourth quarter 2012 compared to the third
quarter 2012 non-GAAP financial results. The phrase "as adjusted" is used in
the following earnings discussion to identify non-GAAP information, together
with the non-GAAP financial measures of net revenues (and by calculation net
revenue yield), adjusted operating income, adjusted operating margin, adjusted
net income attributable to common shareholders and adjusted diluted EPS. The
most directly comparable U.S. GAAP items are reconciled to these non-GAAP
items on pages 12 through 16 of this release.

Net revenues increased by $41.2 million (5.6%) to $775.9 million in the fourth
quarter from $734.7 million in the third quarter 2012. The change was
principally due to increases in investment management fees and performance fee
revenues. Net revenue yield before performance fees improved by 0.6 basis
points from 43.8 basis points to 44.4 basis points, reflecting an average AUM
weighting move towards higher fee-earning asset classes. Foreign exchange rate
changes increased fourth quarter net revenues by $2.5 million when compared to
the third quarter 2012.

Investment management fees, as adjusted, increased $25.1 million (3.0%) to
$865.0 million in the fourth quarter from $839.9 million in the third quarter
2012. The increase reflects higher average AUM as well as increasing revenue
yields. Foreign exchange rate changes increased fourth quarter management fees
by $3.8 million when compared to third quarter 2012.

Service and distribution fees, as adjusted, increased $3.3 million (1.7%) to
$199.4 million in the fourth quarter from $196.1 million in the third quarter
2012, reflecting the higher average AUM. Foreign exchange rate changes
increased fourth quarter service and distribution fees by $0.3 million when
compared to third quarter 2012.

Performance fees, as adjusted, were $21.1 million in the fourth quarter
compared to $3.4 million in the third quarter 2012. The fourth quarter
performance fees were primarily earned by our private wealth management
business. Other revenues, as adjusted, increased by $3.0 million (12.3%) in
the fourth quarter to $27.4 million, compared to $24.4 million in the third
quarter 2012, principally due to improved transaction fees from real estate
fund activities.

Third-party distribution, service and advisory expenses, as adjusted,
increased by $7.9 million (2.4%) to $337.0 million in the fourth quarter
compared to $329.1 million in the third quarter 2012, increasing in line with
higher investment management fees and service and distribution fees. Foreign
exchange rate changes increased the fourth quarter third-party distribution,
services and advisory expenses by $1.6 million.

Total operating expenses, as adjusted, increased by $15.1 million (3.1%) to
$499.4 million in the fourth quarter from $484.3 million in the third quarter
2012 primarily due to increased employee compensation expenses. Foreign
exchange rate changes increased operating expenses by $1.4 million when
compared to the third quarter 2012.

Employee compensation expenses, as adjusted, increased by $14.3 million (4.4%)
to $342.0 million in the fourth quarter from $327.7 million in the third
quarter 2012. The fourth quarter includes additional bonus expense
predominately linked to the quarter's performance fee revenues and increases
in operating income. In addition, the fourth quarter included a $1.5 million
increase in sales commissions in our Continental European business, and a $4.8
million increase in other staff related expenses driven by investment in our
fixed income business and year-end staff benefit expense adjustments. Foreign
exchange rate changes increased fourth quarter employee compensation expenses
by $0.7 million when compared to the third quarter 2012.

Marketing expenses, as adjusted, decreased by $2.7 million (10.2%) to $23.8
million in the fourth quarter from $26.5 million in the third quarter 2012 due
to reduced advertising expenditure. Foreign exchange rate changes increased
fourth quarter marketing expenses by $0.2 million when compared to the third
quarter 2012.

Property, office and technology expenses, as adjusted, increased $2.4 million
(3.5%) to $71.7 million in the fourth quarter from $69.3 million in the third
quarter 2012. The fourth quarter included increases in outsourced
administration in Europe as we transitioned the U.K. transfer agency processes
to a third party provider. Foreign exchange rate changes increased fourth
quarter property, office and technology expenses by $0.2 million when compared
to the third quarter 2012.

General and administrative expenses, as adjusted, increased $1.1 million
(1.8%) to $61.9 million in the fourth quarter from $60.8 million in the third
quarter 2012. The fourth quarter included additional professional services
expenses associated with increasing regulatory requirements in Europe. Foreign
exchange rate changes increased fourth quarter general and administrative
expenses by $0.2 million when compared to the third quarter 2012.

Non-operating other income and expenses, as adjusted, included equity in
earnings from partnership investments of $2.8 million in the fourth quarter
compared to $1.6 million in the third quarter 2012. Other gains and losses,
net in the fourth quarter were a loss of $0.4 million compared to third
quarter investment realized gains of $9.5 million. The effective tax rate
decreased to 25.0% for the fourth quarter from 25.8% for the third quarter
2012.

U.S. GAAP Earnings

Operating revenues increased 4.9% to $1,092.9 million in the fourth quarter
from $1,041.4 million in the third quarter 2012. Operating expenses increased
by 5.4% to $870.1 million in the fourth quarter from $825.4 million in the
third quarter 2012.

Operating expenses include $21.7 million in the fourth quarter related to the
European infrastructure initiative, compared to $4.0 million for the third
quarter. As part of the outsourcing of the U.K. transfer agency, operational
process changes resulted in an accounting adjustment recognizing additional
distribution expense of $15.3 million in the fourth quarter. This additional
expense is attributable to periods prior to 2012 and has no impact on cash
flows.

Operating expenses included $2.6 million of transaction and integration
charges incurred in the fourth quarter relating to the remaining closed-end
fund merger expenses associated with the 2010 acquisition of Morgan Stanley's
retail asset management business, including Van Kampen Investments, together
with incurred professional services costs associated with the pending
acquisition of a 49.0% ownership interest in Religare Asset Management
Limited. Transaction and integration charges were $3.0 million in the third
quarter 2012.

Other gains and losses, net included a charge of $23.5 million in the fourth
quarter related to the call premiums on the redemption of the $333.5 million
principal amount of 5.375% Senior Notes due February 27, 2013 and the $197.1
million principal amount of the 5.375% Senior Notes due December 15, 2014. The
third quarter included an $8.3 million gain on the sale of certain European
CLO management contracts.

The effective tax rate, excluding noncontrolling interests, decreased to 28.1%
for the fourth quarter from 30.3% for the third quarter 2012.

Balance Sheet and Cash Flow Statement Presentation

The company is presenting both a U.S. GAAP balance sheet and balance sheet
information excluding consolidated investment products, along with a U.S. GAAP
statement of cash flows and cash flow statement information excluding
consolidated investment products in this release. The information presented
excluding consolidated investment products are non-GAAP presentations. Balance
sheet and cash flow statement information before and after the consolidation
of investment products are reconciled on pages 19 and 22, respectively.

The company believes that, by excluding the consolidation of investment
products, the non-GAAP balance sheet and cash flow statement information
provide a more representative presentation of our financial risks and the
company's cash and debt positions, allowing more appropriate comparisons with
our industry peers. Management uses these non-GAAP presentations to evaluate
the business and the presentations are consistent with internal management
reporting. As demonstrated by the selected balance sheet data that follows,
inclusion of the long-term debt of consolidated investment products within
liquidity measures, such as debt-to-equity ratios, causes the company to
appear to be far more indebted than is the case.

Balance Sheets and Capital Management

Selected balance sheet information is reflected in the table below:

                     Excluding Consolidated       Including Consolidated
                     Investment Products (CIP)    Investment Products (CIP)
                     (Non-GAAP)^(1)               (U.S. GAAP)
                     December 31,   December 31,  December 31,   December 31,
                     2012           2011          2012           2011
$ in millions
Cash and cash
equivalents          $835.5         $727.4        $835.5         $727.4
Investments of CIP   —              —             4,550.6        6,629.0
Total assets^(1)     $12,640.9      $12,329.2     $17,492.4      $19,347.0
Current maturities
of total debt        $—             $215.1        $—             $215.1
Long-term debt       1,186.0        1,069.6       1,186.0        1,069.6
Long-term debt of
CIP                  —              —             3,899.4        5,512.9
Total debt / Total
debt plus CIP debt   $1,186.0       $1,284.7      $5,085.4       $6,797.6
Total
liabilities^(1)      $4,448.6       $4,541.0      $8,443.4       $10,209.4
Total equity^(1)     $8,192.3       $7,788.2      $9,049.0       $9,137.6
Debt/Equity % ^(1)
(2)                  14.5        %  16.5       %  56.2        %  74.4       %

(1) The balance sheet line items excluding consolidated investment products
are non-GAAP financial measures. See the reconciliation information on page
19 for a fully expanded balance sheet before and after the consolidation of
investment products.
(2) The debt/equity ratio excluding CIP is a non-GAAP financial measure. The
debt/equity ratio is calculated as total debt divided by total equity for the
balance sheet excluding CIP and total debt plus long-term debt of CIP divided
by equity for the balance sheet including CIP.

As of December 31, 2012, the company's cash and cash equivalents were $835.5
million with total debt of $1,186.0 million The credit facility balance was
$586.5 million at December 31, 2012, compared to $754.5 million at September
30, 2012 and $539.0 million at December 31, 2011.

During the fourth quarter the company issued an initial aggregate principal
amount of $600.0 million of 3.125% senior notes with a maturity of November
30, 2022. The majority of the proceeds were used to redeem the $333.5 million
principal amount of 5.375% Senior Notes due February 27, 2013 and the $197.1
million principal amount of the 5.375% Senior Notes due December 15, 2014.

During the fourth quarter, the company repurchased $75.0 million of its stock,
representing 3.0 million shares at a weighted average share price of $24.64,
bringing the total 2012 full-year stock repurchases to $265.0 million.

Dividends paid in the fourth quarter were $77.6 million bringing the total
2012 full-year cash dividends to $289.0 million. Today the company is
announcing a fourth-quarter cash dividend of 17.25 cents per share to holders
of common shares. The dividend is payable on March 8, 2013 to shareholders of
record at the close of business on February 21, 2013.

Headcount

As of December 31, 2012, the company had 6,128 employees, compared to 6,101
employees as of September 30, 2012.

Invesco Ltd. is a leading independent global investment management firm,
dedicated to helping investors worldwide achieve their financial objectives.
By delivering the combined power of our distinctive investment management
capabilities, Invesco provides a wide range of investment strategies and
vehicles to our retail, institutional and high net worth clients around the
world. Operating in more than 20 countries, the firm is listed on the New York
Stock Exchange under the symbol IVZ. Additional information is available at
www.invesco.com.

Members of the investment community and general public are invited to listen
to the conference call today, Thursday, January 31, 2013, at 9:00 a.m. ET by
dialing one of the following numbers: 1-866-617-1526 for U.S. and Canadian
callers and 0800-279-9630 for U.K. callers or 1-210-795-0624 for international
callers. An audio replay of the conference call will be available until
Thursday, February 14, 2013 at 5:00 p.m. ET by calling 1-866-365-2384 for U.S.
and Canadian callers or 1-203-369-0214 for international callers. A
presentation highlighting the company's performance will be available during a
live Webcast and on Invesco's Website at www.invesco.com.

This release, and comments made in the associated conference call today, may
include "forward-looking statements." Forward-looking statements include
information concerning future results of our operations, expenses, earnings,
liquidity, cash flow and capital expenditures, industry or market conditions,
AUM, acquisitions, debt and our ability to obtain additional financing or make
payments, regulatory developments, demand for and pricing of our products and
other aspects of our business or general economic conditions. In addition,
words such as "believes," "expects," "anticipates," "intends," "plans,"
"estimates," "projects," "forecasts," and future or conditional verbs such as
"will," "may," "could," "should," and "would" as well as any other statement
that necessarily depends on future events, are intended to identify
forward-looking statements.

Forward-looking statements are not guarantees, and they involve risks,
uncertainties and assumptions. 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 and urge you to carefully
consider the risks described in our most recent Form 10-K and subsequent Forms
10-Q, filed with the Securities and Exchange Commission. You may obtain these
reports from the SEC's Web site at www.sec.gov. We expressly disclaim any
obligation to update the information in any public disclosure if any
forward-looking statement later turns out to be inaccurate.

Invesco Ltd.

Non-GAAP Condensed Consolidated Income Statement Information

(Unaudited, in millions, other than per share amounts, headcount and AUM)
                             Q4-12     Q3-12     % Change  Q4-11     % Change
Adjusted revenues
Investment management fees   $865.0    $839.9    3.0    %  $770.8    12.2   %
Service and distribution
fees                         199.4     196.1     1.7    %  181.1     10.1   %
Performance fees             21.1      3.4       N/A       24.0      (12.1) %
Other                        27.4      24.4      12.3   %  44.9      (39.0) %
Third-party distribution,
service and advisory         (337.0)   (329.1)   2.4    %  (304.0)   10.9   %
Net revenues                 775.9     734.7     5.6    %  716.8     8.2    %
Adjusted operating expenses
Employee compensation        342.0     327.7     4.4    %  312.3     9.5    %
Marketing                    23.8      26.5      (10.2) %  22.1      7.7    %
Property, office and
technology                   71.7      69.3      3.5    %  61.9      15.8   %
General and administrative   61.9      60.8      1.8    %  64.2      (3.6)  %
Total adjusted operating
expenses                     499.4     484.3     3.1    %  460.5     8.4    %
Adjusted operating income    276.5     250.4     10.4   %  256.3     7.9    %
Adjusted other
income/(expense)
Equity in earnings of
unconsolidated affiliates    2.8       1.6       75.0   %  (1.1)     N/A
Interest and dividend income 4.1       5.0       (18.0) %  6.2       (33.9) %
Interest expense             (12.7)    (12.6)    0.8    %  (14.3)    (11.2) %
Other gains and losses, net  (0.4)     9.5       N/A       (0.1)     N/A
Adjusted income before
income taxes                 270.3     253.9     6.5    %  247.0     9.4    %
Adjusted income tax
provision                    (67.7)    (65.5)    3.4    %  (56.5)    19.8   %
Adjusted net income          202.6     188.4     7.5    %  190.5     6.4    %
Adjusted net (income)/loss
attributable to
noncontrolling interests in
consolidated entities        —         —         N/A       —         N/A
Adjusted net income
attributable to common
shareholders                 $202.6    $188.4    7.5    %  $190.5    6.4    %
Adjusted diluted EPS         $0.45     $0.42     7.1    %  $0.42     7.1    %
Average diluted shares
outstanding                  451.2     452.8     (0.4)  %  458.3     (1.5)  %
Ending Headcount             6,128     6,101     0.4    %  6,162     (0.6)  %
Ending AUM (in billions)     $687.7    $683.0    0.7    %  $625.3    10.0   %
Average AUM (in billions)    $680.2    $667.9    1.8    %  $621.7    9.4    %

Invesco Ltd.

Non-GAAP Condensed Consolidated Income Statement Information

(Unaudited, in millions, other than per share amounts, headcount and AUM)
                                           Year Ended December 31,
                                           2012          2011        % Change
Adjusted revenues
Investment management fees                 $3,319.1      $3,235.3    2.6    %
Service and distribution fees              771.6         775.1       (0.5)  %
Performance fees                           61.2          38.4        59.4   %
Other                                      110.9         136.5       (18.8) %
Third-party distribution, service and
advisory                                   (1,303.8)     (1,286.9)   1.3    %
Net revenues                               2,959.0       2,898.4     2.1    %
Adjusted operating expenses
Employee compensation                      1,289.2       1,229.2     4.9    %
Marketing                                  104.1         99.5        4.6    %
Property, office and technology            275.1         251.8       9.3    %
General and administrative                 245.5         249.0       (1.4)  %
Total adjusted operating expenses          1,913.9       1,829.5     4.6    %
Adjusted operating income                  1,045.1       1,068.9     (2.2)  %
Adjusted other income/(expense)
Equity in earnings of unconsolidated
affiliates                                 14.6          9.2         58.7   %
Interest and dividend income               19.8          16.6        19.3   %
Interest expense                           (52.3)        (61.8)      (15.4) %
Other gains and losses, net                9.8           6.7         46.3   %
Adjusted income before income taxes        1,037.0       1,039.6     (0.3)  %
Adjusted income tax provision              (260.3)       (258.1)     0.9    %
Adjusted net income                        776.7         781.5       (0.6)  %
Adjusted net (income)/loss attributable to
noncontrolling interests in consolidated
entities                                   —             0.1         N/A
Adjusted net income attributable to common
shareholders                               $776.7        $781.6      (0.6)  %
Adjusted diluted EPS                       $1.71         $1.68       1.8    %
Average diluted shares outstanding         453.8         464.7       (2.3)  %
Ending Headcount                           6,128         6,162       (0.6)  %
Ending AUM (in billions)                   $687.7        $625.3      10.0   %
Average AUM (in billions)                  $664.4        $634.3      4.7    %

Invesco Ltd.

U.S. GAAP Condensed Consolidated Income Statements

(Unaudited, in millions, other than per share amounts)
                             Q4-12     Q3-12     % Change  Q4-11     % Change
Operating revenues
Investment management fees   $846.9    $818.0    3.5    %  $747.6    13.3   %
Service and distribution
fees                         199.4     196.1     1.7    %  181.1     10.1   %
Performance fees             19.9      3.0       N/A       23.9      (16.7) %
Other                        26.7      24.3      9.9    %  44.5      (40.0) %
Total operating revenues     1,092.9   1,041.4   4.9    %  997.1     9.6    %
Operating expenses
Employee compensation        343.7     330.9     3.9    %  316.5     8.6    %
Third-party distribution,
service and advisory         350.9     327.2     7.2    %  301.8     16.3   %
Marketing                    23.3      26.4      (11.7) %  21.1      10.4   %
Property, office and
technology                   73.2      69.1      5.9    %  66.0      10.9   %
General and administrative   76.4      68.8      11.0   %  74.6      2.4    %
Transaction and integration  2.6       3.0       (13.3) %  5.5       (52.7) %
Total operating expenses     870.1     825.4     5.4    %  785.5     10.8   %
Operating income             222.8     216.0     3.1    %  211.6     5.3    %
Other income/(expense)
Equity in earnings of
unconsolidated affiliates    7.9       5.2       51.9   %  4.9       61.2   %
Interest and dividend income 2.7       2.5       8.0    %  2.7       —
Interest income of
consolidated investment
products                     52.1      68.7      (24.2) %  73.6      (29.2) %
Other gains/(losses) of
consolidated investment
products, net                (27.8)    (25.2)    10.3   %  104.4     N/A
Interest expense             (12.7)    (12.6)    0.8    %  (14.3)    (11.2) %
Interest expense of
consolidated investment
products                     (33.9)    (41.9)    (19.1) %  (51.8)    (34.6) %
Other gains and losses, net  (21.0)    18.4      N/A       54.8      N/A
Income before income taxes   190.1     231.1     (17.7) %  385.9     (50.7) %
Income tax provision         (62.1)    (74.2)    (16.3) %  (76.0)    (18.3) %
Net income                   128.0     156.9     (18.4) %  309.9     (58.7) %
Net (income)/loss
attributable to
noncontrolling interests in
consolidated entities        30.7      13.7      124.1  %  (107.6)   N/A
Net income attributable to
common shareholders          $158.7    $170.6    (7.0)  %  $202.3    (21.6) %
Earnings per share:
---basic                     $0.35     $0.38     (7.9)  %  $0.44     (20.5) %
---diluted                   $0.35     $0.38     (7.9)  %  $0.44     (20.5) %
Average shares outstanding:
---basic                     449.9     451.3     (0.3)  %  456.8     (1.5)  %
---diluted                   451.2     452.8     (0.4)  %  458.3     (1.5)  %

Invesco Ltd.

U.S. GAAP Condensed Consolidated Income Statements

(Unaudited, in millions, other than per share amounts)
                                           Year ended December 31,
                                           2012          2011        % Change
Operating revenues
Investment management fees                 $3,236.9      $3,138.5    3.1    %
Service and distribution fees              771.6         780.3       (1.1)  %
Performance fees                           58.8          37.9        55.1   %
Other                                      109.7         135.5       (19.0) %
Total operating revenues                   4,177.0       4,092.2     2.1    %
Operating expenses
Employee compensation                      1,297.7       1,246.2     4.1    %
Third-party distribution, service and
advisory                                   1,311.8       1,282.5     2.3    %
Marketing                                  103.0         86.0        19.8   %
Property, office and technology            277.6         254.6       9.0    %
General and administrative                 307.2         295.4       4.0    %
Transaction and integration                8.2           29.4        (72.1) %
Total operating expenses                   3,305.5       3,194.1     3.5    %
Operating income                           871.5         898.1       (3.0)  %
Other income/(expense)
Equity in earnings of unconsolidated
affiliates                                 29.7          30.5        (2.6)  %
Interest and dividend income               9.8           11.0        (10.9) %
Interest income of consolidated investment
products                                   258.5         307.2       (15.9) %
Other gains/(losses) of consolidated
investment products, net                   (97.7)        (138.9)     (29.7) %
Interest expense                           (52.3)        (61.8)      (15.4) %
Interest expense of consolidated
investment products                        (168.3)       (187.0)     (10.0) %
Other gains and losses, net                8.3           49.0        (83.1) %
Income before income taxes                 859.5         908.1       (5.4)  %
Income tax provision                       (272.2)       (286.1)     (4.9)  %
Net income                                 587.3         622.0       (5.6)  %
Net (income)/loss attributable to
noncontrolling interests in consolidated
entities                                   89.8          107.7       (16.6) %
Net income attributable to common
shareholders                               $677.1        $729.7      (7.2)  %
Earnings per share:
---basic                                   $1.50         $1.58       (5.1)  %
---diluted                                 $1.49         $1.57       (5.1)  %
Average shares outstanding:
---basic                                   452.3         462.9       (2.3)  %
---diluted                                 453.8         464.7       (2.3)  %

Invesco Ltd.

Reconciliation of U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP Condensed Consolidated Income Statement
Information

(Unaudited, in millions, other than per share amounts)

Three months ended December 31, 2012
                                                                        Market
                                                                        appreciation
                                            Third party                 /
                             Proportional   distribution,  Acquisition  depreciation
                             consolidation  service and    /            of deferred   Consolidated  Other
                  U.S. GAAP  of joint       advisory       Disposition  compensation  investment    reconciling  Non-GAAP
                  basis      ventures       expenses       related      awards        products      items        basis
Operating
revenues
Investment
management fees   $846.9     $10.7          $—             $—           $—            $7.4          $—           $865.0
Service and
distribution
fees              199.4      —              —              —            —             —             —            199.4
Performance fees  19.9       —              —              —            —             1.2           —            21.1
Other             26.7       0.7            —              —            —             —             —            27.4
Third-party
distribution,
service and
advisory          —          (1.4)          (350.9)        —            —             —             15.3         (337.0)
Total operating
revenues
reconciled to
net revenues      1,092.9    10.0           (350.9)        —            —             8.6           15.3         775.9
Operating
expenses
Employee
compensation      343.7      3.5            —              —            (3.3)         —             (1.9)        342.0
Third-party
distribution,
service and
advisory          350.9      —              (350.9)        —            —             —             —            —
Marketing         23.3       0.6            —              —            —             —             (0.1)        23.8
Property, office
and technology    73.2       0.8            —              —            —             —             (2.3)        71.7
General and
administrative    76.4       1.0            —              (4.9)        —             (8.5)         (2.1)        61.9
Transaction and
integration       2.6        —              —              (2.6)        —             —             —            —
Total operating
expenses          870.1      5.9            (350.9)        (7.5)        (3.3)         (8.5)         (6.4)        499.4
Operating income
reconciled to
adjusted
operating income  222.8      4.1            —              7.5          3.3           17.1          21.7         276.5
Other
income/(expense)
Equity in
earnings of
unconsolidated
affiliates        7.9        (4.7)          —              —            —             (0.4)         —            2.8
Interest and
dividend income   2.7        0.6            —              —            (1.2)         2.0           —            4.1
Interest income
of consolidated
investment
products          52.1       —              —              —            —             (52.1)        —            —
Other
gains/(losses)
of consolidated
investment
products, net     (27.8)     —              —              —            —             27.8          —            —
Interest expense  (12.7)     —              —              —            —                           —            (12.7)
Interest expense
of consolidated
investment
products          (33.9)     —              —              —            —             33.9          —            —
Other gains and
losses, net       (21.0)     —              —              —            (2.3)         —             22.9         (0.4)
Income before
income taxes      190.1      —              —              7.5          (0.2)         28.3          44.6         270.3
Income tax
provision         (62.1)     —              —              5.0          —             —             (10.6)       (67.7)
Net income        128.0      —              —              12.5         (0.2)         28.3          34.0         202.6
Net
(income)/loss
attributable to
noncontrolling
interests in
consolidated
entities          30.7       —              —              —            —             (30.7)        —            —
Net income
attributable to
common
shareholders
reconciled to
adjusted net
income
attributable to
common
shareholders      $158.7     $—             $—             $12.5        ($0.2)        ($2.4)        $34.0        $202.6
                                                                                     Adjusted operating
Operating margin  20.4    %                                                          margin                      35.6    %
Average diluted
shares                                                                               Average diluted shares
outstanding       451.2                                                              outstanding                 451.2
Diluted EPS       $0.35                                                              Adjusted diluted EPS        $0.45

See pages 23 through 26 for notes to the reconciliation.

Invesco Ltd.

Reconciliation of U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP Condensed Consolidated Income Statement
Information

(Unaudited, in millions, other than per share amounts)

Three months ended September 30, 2012
                                                                        Market
                                                                        appreciation
                                            Third party                 /
                             Proportional   distribution,  Acquisition  depreciation
                             consolidation  service and    /            of deferred   Consolidated  Other
                  U.S. GAAP  of joint       advisory       Disposition  compensation  investment    reconciling  Non-GAAP
                  basis      ventures       expenses       related      awards        products      items        basis
Operating
revenues
Investment
management fees   $818.0     $10.8          $—             $—           $—            $11.1         $—           $839.9
Service and
distribution
fees              196.1      —              —              —            —             —             —            196.1
Performance fees  3.0        —              —              —            —             0.4           —            3.4
Other             24.3       0.1            —              —            —             —             —            24.4
Third-party
distribution,
service and
advisory          —          (1.9)          (327.2)        —            —             —             —            (329.1)
Total operating
revenues
reconciled to
net revenues      1,041.4    9.0            (327.2)        —            —             11.5          —            734.7
Operating
expenses
Employee
compensation      330.9      2.8            —              —            (4.7)         —             (1.3)        327.7
Third-party
distribution,
service and
advisory          327.2      —              (327.2)        —            —             —             —            —
Marketing         26.4       0.7            —              —            —             —             (0.6)        26.5
Property, office
and technology    69.1       0.9            —              —            —             —             (0.7)        69.3
General and
administrative    68.8       1.0            —              (5.3)        —             (2.3)         (1.4)        60.8
Transaction and
integration       3.0        —              —              (3.0)        —             —             —            —
Total operating
expenses          825.4      5.4            (327.2)        (8.3)        (4.7)         (2.3)         (4.0)        484.3
Operating income
reconciled to
adjusted
operating income  216.0      3.6            —              8.3          4.7           13.8          4.0          250.4
Other
income/(expense)
Equity in
earnings of
unconsolidated
affiliates        5.2        (4.1)          —              —            —             0.5           —            1.6
Interest and
dividend income   2.5        0.5            —              —            (1.4)         3.4           —            5.0
Interest income
of consolidated
investment
products          68.7       —              —              —            —             (68.7)        —            —
Other
gains/(losses)
of consolidated
investment
products, net     (25.2)     —              —              —            —             25.2          —            —
Interest expense  (12.6)     —              —              —            —             —             —            (12.6)
Interest expense
of consolidated
investment
products          (41.9)     —              —              —            —             41.9          —            —
Other gains and
losses, net       18.4       —              —              (8.3)        (9.7)         8.7           0.4          9.5
Income before
income taxes      231.1      —              —              —            (6.4)         24.8          4.4          253.9
Income tax
provision         (74.2)     —              —              7.6          1.9           —             (0.8)        (65.5)
Net income        156.9      —              —              7.6          (4.5)         24.8          3.6          188.4
Net
(income)/loss
attributable to
noncontrolling
interests in
consolidated
entities          13.7       —              —              —            —             (13.7)        —            —
Net income
attributable to
common
shareholders
reconciled to
adjusted net
income
attributable to
common
shareholders      $170.6     $—             $—             $7.6         ($4.5)        $11.1         $3.6         $188.4
                                                                                     Adjusted operating
Operating margin  20.7    %                                                          margin                      34.1    %
Average diluted
shares                                                                               Average diluted shares
outstanding       452.8                                                              outstanding                 452.8
Diluted EPS       $0.38                                                              Adjusted diluted EPS        $0.42

See pages 23 through 26 for notes to the reconciliation.

Invesco Ltd.

Reconciliation of U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP Condensed Consolidated Income Statement
Information

(Unaudited, in millions, other than per share amounts)

Three months ended December 31, 2011
                                                                        Market
                                                                        appreciation
                                            Third party                 /
                             Proportional   distribution,  Acquisition  depreciation
                             consolidation  service and    /            of deferred   Consolidated  Other
                  U.S. GAAP  of joint       advisory       Disposition  compensation  investment    reconciling  Non-GAAP
                  basis      ventures       expenses       related      awards        products      items        basis
Operating
revenues
Investment
management fees   $747.6     $11.6          $—             $—           $—            $11.6         $—           $770.8
Service and
distribution
fees              181.1      —              —              —            —             —             —            181.1
Performance fees  23.9       —              —              —            —             0.1           —            24.0
Other             44.5       0.4            —              —            —             —             —            44.9
Third-party
distribution,
service and
advisory          —          (2.2)          (301.8)        —            —             —             —            (304.0)
Total operating
revenues
reconciled to
net revenues      997.1      9.8            (301.8)        —            —             11.7          —            716.8
Operating
expenses
Employee
compensation      316.5      2.5            —              —            (5.5)         —             (1.2)        312.3
Third-party
distribution,
service and
advisory          301.8      —              (301.8)        —            —             —             —            —
Marketing         21.1       1.0            —              —            —             —             —            22.1
Property, office
and technology    66.0       0.9            —              —            —             —             (5.0)        61.9
General and
administrative    74.6       1.1            —              (3.7)        —             (3.0)         (4.8)        64.2
Transaction and
integration       5.5        —              —              (5.5)        —             —             —            —
Total operating
expenses          785.5      5.5            (301.8)        (9.2)        (5.5)         (3.0)         (11.0)       460.5
Operating income
reconciled to
adjusted
operating income  211.6      4.3            —              9.2          5.5           14.7          11.0         256.3
Other
income/(expense)
Equity in
earnings of
unconsolidated
affiliates        4.9        (5.1)          —              —            —             (0.9)         —            (1.1)
Interest and
dividend income   2.7        0.8            —              —            (0.2)         2.9           —            6.2
Interest income
of consolidated
investment
products          73.6       —              —              —            —             (73.6)        —            —
Other
gains/(losses)
of consolidated
investment
products, net     104.4      —              —              —            —             (104.4)       —            —
Interest expense  (14.3)     —              —              —            —             —             —            (14.3)
Interest expense
of consolidated
investment
products          (51.8)     —              —              —            —             51.8          —            —
Other gains and
losses, net       54.8       —              —              —            (9.9)         —             (45.0)       (0.1)
Income before
income taxes      385.9      —              —              9.2          (4.6)         (109.5)       (34.0)       247.0
Income tax
provision         (76.0)     —              —              3.2          1.4           —             14.9         (56.5)
Net income        309.9      —              —              12.4         (3.2)         (109.5)       (19.1)       190.5
Net
(income)/loss
attributable to
noncontrolling
interests in
consolidated
entities          (107.6)    —              —              —            —             107.6         —            —
Net income
attributable to
common
shareholders
reconciled to
adjusted net
income
attributable to
common
shareholders      $202.3     $—             $—             $12.4        ($3.2)        ($1.9)        ($19.1)      $190.5
                                                                        Adjusted operating
Operating margin  21.2    %                                             margin                                   35.8    %
Average diluted
shares                                                                  Average diluted shares
outstanding       458.3                                                 outstanding                              458.3
Diluted EPS       $0.44                                                 Adjusted diluted EPS                     $0.42

See pages 23 through 26 for notes to the reconciliation.

Invesco Ltd.

Reconciliation of U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP Condensed Consolidated Income Statement
Information

(Unaudited, in millions, other than per share amounts)

Year ended December 31, 2012
                                                                         Market
                                                                         appreciation
                                             Third party                 /
                              Proportional   distribution,  Acquisition  depreciation                Other
                              consolidation  service and    /            of deferred   Consolidated
                  U.S. GAAP   of joint       advisory       Disposition  compensation  investment    reconciling  Non-GAAP
                  basis       ventures       expenses       related      awards        products      items        basis
Operating
revenues
Investment
management fees   $3,236.9    $43.6          $—             $—           $—            $38.6         $—           $3,319.1
Service and
distribution
fees              771.6       —              —              —            —             —             —            771.6
Performance fees  58.8        —              —              —            —             2.4           —            61.2
Other             109.7       1.2            —              —            —             —             —            110.9
Third-party
distribution,
service and
advisory          —           (7.3)          (1,311.8)      —            —             —             15.3         (1,303.8)
Total operating
revenues
reconciled to
net revenues      4,177.0     37.5           (1,311.8)      —            —             41.0          15.3         2,959.0
Operating
expenses
Employee
compensation      1,297.7     11.4           —              —            (14.3)        —             (5.6)        1,289.2
Third-party
distribution,
service and
advisory          1,311.8     —              (1,311.8)      —            —             —             —            —
Marketing         103.0       2.7            —              —            —             —             (1.6)        104.1
Property, office
and technology    277.6       3.3            —              —            —             —             (5.8)        275.1
General and
administrative    307.2       4.4            —              (27.3)       —             (31.5)        (7.3)        245.5
Transaction and
integration       8.2         —              —              (8.2)        —             —             —            —
Total operating
expenses          3,305.5     21.8           (1,311.8)      (35.5)       (14.3)        (31.5)        (20.3)       1,913.9
Operating income
reconciled to
adjusted
operating income  871.5       15.7           —              35.5         14.3          72.5          35.6         1,045.1
Other
income/(expense)
Equity in
earnings of
unconsolidated
affiliates        29.7        (18.1)         —              3.5          —             (0.5)         —            14.6
Interest and
dividend income   9.8         2.4            —              —            (4.7)         12.3          —            19.8
Interest income
of consolidated
investment
products          258.5       —              —              —            —             (258.5)       —            —
Other
gains/(losses)
of consolidated
investment
products, net     (97.7)      —              —              —            —             97.7          —            —
Interest expense  (52.3)      —              —              —            —             —             —            (52.3)
Interest expense
of consolidated
investment
products          (168.3)     —              —              —            —             168.3         —            —
Other gains and
losses, net       8.3                                       (11.8)       (19.7)        8.7           24.3         9.8
Income before
income taxes      859.5       —              —              27.2         (10.1)        100.5         59.9         1,037.0
Income tax
provision         (272.2)     —              —              22.8         2.7           —             (13.6)       (260.3)
Net income        587.3       —              —              50.0         (7.4)         100.5         46.3         776.7
Net
(income)/loss
attributable to
noncontrolling
interests in
consolidated
entities          89.8        —              —              —            —             (89.8)        —            —
Net income
attributable to
common
shareholders
reconciled to
adjusted net
income
attributable to
common
shareholders      $677.1      $—             $—             $50.0        ($7.4)        $10.7         $46.3        $776.7
                                                                                      Adjusted operating
Operating margin  20.9     %                                                          margin                      35.3      %
Average diluted
shares                                                                                Average diluted shares
outstanding       453.8                                                               outstanding                 453.8
Diluted EPS       $1.49                                                               Adjusted diluted EPS        $1.71

See pages 23 through 26 for notes to the reconciliation.

Invesco Ltd.

Reconciliation of U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP Condensed Consolidated Income Statement
Information

(Unaudited, in millions, other than per share amounts)

Year ended December 31, 2011
                                                                         Market
                                                                         appreciation
                                             Third party                 /
                              Proportional   distribution,  Acquisition  depreciation
                              consolidation  service and    /            of deferred   Consolidated  Other        Non-GAAP
                  U.S. GAAP   of joint       advisory       Disposition  compensation  investment    reconciling
                  basis       ventures       expenses       related      awards        products      items        basis
Operating
revenues
Investment
management fees   $3,138.5    $50.0          $—             $—           $—            $46.8         $—           $3,235.3
Service and
distribution
fees              780.3       —              —              (5.2)        —             —             —            775.1
Performance fees  37.9        —              —              —            —             0.5           —            38.4
Other             135.5       1.0            —              —            —             —             —            136.5
Third-party
distribution,
service and
advisory          —           (9.6)          (1,282.5)      5.2          —             —             —            (1,286.9)
Total operating
revenues
reconciled to
net revenues      4,092.2     41.4           (1,282.5)      —            —             47.3          —            2,898.4
Operating
expenses
Employee
compensation      1,246.2     11.4           —              (15.0)       (5.8)         —             (7.6)        1,229.2
Third-party
distribution,
service and
advisory          1,282.5     —              (1,282.5)      —            —             —             —            —
Marketing         86.0        3.1            —              —            —             —             10.4         99.5
Property, office
and technology    254.6       3.1            —              —            —             —             (5.9)        251.8
General and
administrative    295.4       4.6            —              (29.0)       —             (13.0)        (9.0)        249.0
Transaction and
integration       29.4        —              —              (29.4)       —             —             —            —
Total operating
expenses          3,194.1     22.2           (1,282.5)      (73.4)       (5.8)         (13.0)        (12.1)       1,829.5
Operating income
reconciled to
adjusted
operating income  898.1       19.2           —              73.4         5.8           60.3          12.1         1,068.9
Other
income/(expense)
Equity in
earnings of
unconsolidated
affiliates        30.5        (21.5)         —              —            —             0.2           —            9.2
Interest and
dividend income   11.0        2.3            —              —            (4.9)         8.2           —            16.6
Interest income
of consolidated
investment
products          307.2       —              —              —            —             (307.2)       —            —
Other
gains/(losses)
of consolidated
investment
products, net     (138.9)     —              —              —            —             138.9         —            —
Interest expense  (61.8)      —              —              —            —             —             —            (61.8)
Interest expense
of consolidated
investment
products          (187.0)     —              —              —            —             187.0         —            —
Other gains and
losses, net       49.0        —              —              —            2.7           —             (45.0)       6.7
Income before
income taxes      908.1       —              —              73.4         3.6           87.4          (32.9)       1,039.6
Income tax
provision         (286.1)     —              —              11.4         (1.1)         —             17.7         (258.1)
Net income        622.0       —              —              84.8         2.5           87.4          (15.2)       781.5
Net
(income)/loss
attributable to
noncontrolling
interests in
consolidated
entities          107.7       —              —              —            —             (107.6)       —            0.1
Net income
attributable to
common
shareholders
reconciled to
adjusted net
income
attributable to
common
shareholders      $729.7      $—             $—             $84.8        $2.5          ($20.2)       ($15.2)      $781.6
                                                                                      Adjusted operating
Operating margin  21.9     %                                                          margin                      36.9      %
Average diluted
shares                                                                                Average diluted shares
outstanding       464.7                                                               outstanding                 464.7
Diluted EPS       $1.57                                                               Adjusted diluted EPS        $1.68

See pages 23 through 26 for notes to the reconciliation.

Invesco Ltd.

Condensed Consolidated Balance Sheet Information Excluding Consolidated
Investment Products

(a non-GAAP presentation, unaudited, in millions)
                                         December 31, 2012  December 31, 2011
ADJUSTED ASSETS
Adjusted current assets:
Cash and cash equivalents                $835.5             $727.4
Unsettled fund receivables               550.1              444.4
Accounts receivable                      453.8              434.6
Investments                              363.9              283.7
Prepaid assets                           50.3               51.2
Other current assets                     94.5               139.2
Deferred tax asset, net                  38.4               28.7
Assets held for policyholders            1,153.6            1,243.5
Total adjusted current assets            3,540.1            3,352.7
Adjusted non-current assets:
Investments                              313.4              293.4
Security deposit assets and receivables  27.4               81.2
Other non-current assets                 26.8               17.9
Deferred sales commissions               47.7               40.5
Property and equipment, net              349.6              312.8
Intangible assets, net                   1,287.7            1,322.8
Goodwill                                 7,048.2            6,907.9
Total adjusted non-current assets        9,100.8            8,976.5
Total adjusted assets                    $12,640.9          $12,329.2
ADJUSTED LIABILITIES AND EQUITY
Adjusted current liabilities:
Current maturities of total debt         $—                 $215.1
Unsettled fund payables                  552.5              439.6
Income taxes payable                     77.9               59.6
Other current liabilities                833.6              861.1
Policyholder payables                    1,153.6            1,243.5
Total adjusted current liabilities       2,617.6            2,818.9
Adjusted non-current liabilities:
Long-term debt                           1,186.0            1,069.6
Deferred tax liabilities, net            311.4              274.0
Security deposits payable                27.4               81.2
Other non-current liabilities            306.2              297.3
Total adjusted non-current liabilities   1,831.0            1,722.1
Total adjusted liabilities               4,448.6            4,541.0
Adjusted equity:
Equity attributable to common
shareholders:
Common shares                            98.1               98.1
Additional paid-in-capital               6,141.0            6,180.6
Treasury shares                          (1,382.9)          (1,280.4)
Retained earnings                        2,780.1            2,381.3
Accumulated other comprehensive income,
net of tax                               551.4              404.1
Total adjusted equity attributable to
common shareholders                      8,187.7            7,783.7
Adjusted equity attributable to
noncontrolling interests in consolidated

entities                                 4.6                4.5
Total adjusted equity                    8,192.3            7,788.2
Total adjusted liabilities and equity    $12,640.9          $12,329.2

Invesco Ltd.

U.S. GAAP Condensed Consolidated Balance Sheets

(Unaudited, in millions)
                                         December 31, 2012  December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents                $835.5             $727.4
Cash and cash equivalents of
consolidated investment products         287.8              382.3
Unsettled fund receivables               550.1              444.4
Accounts receivable                      449.4              424.4
Accounts receivable of consolidated
investment products                      84.1               98.5
Investments                              363.9              283.7
Prepaid assets                           50.3               51.2
Other current assets                     94.5               150.0
Deferred tax asset, net                  38.4               28.7
Assets held for policyholders            1,153.6            1,243.5
Total current assets                     3,907.6            3,834.1
Non-current assets:
Investments                              246.8              200.8
Investments of consolidated investment
products                                 4,550.6            6,629.0
Security deposit assets and receivables  27.4               81.2
Other non-current assets                 26.8               17.9
Deferred sales commissions               47.7               40.5
Property and equipment, net              349.6              312.8
Intangible assets, net                   1,287.7            1,322.8
Goodwill                                 7,048.2            6,907.9
Total non-current assets                 13,584.8           15,512.9
Total assets                             $17,492.4          $19,347.0
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of total debt         $—                 $215.1
Unsettled fund payables                  552.5              439.6
Income taxes payable                     77.9               59.6
Other current liabilities                824.7              841.5
Other current liabilities of
consolidated investment products         104.3              175.1
Policyholder payables                    1,153.6            1,243.5
Total current liabilities                2,713.0            2,974.4
Non-current liabilities:
Long-term debt                           1,186.0            1,069.6
Long-term debt of consolidated
investment products                      3,899.4            5,512.9
Deferred tax liabilities, net            311.4              274.0
Security deposits payable                27.4               81.2
Other non-current liabilities            306.2              297.3
Total non-current liabilities            5,730.4            7,235.0
Total liabilities                        8,443.4            10,209.4
Equity:
Equity attributable to common
shareholders:
Common shares                            98.1               98.1
Additional paid-in-capital               6,141.0            6,180.6
Treasury shares                          (1,382.9)          (1,280.4)
Retained earnings                        2,801.3            2,413.2
Retained earnings appropriated for
investors in consolidated investment
products                                 128.8              334.3
Accumulated other comprehensive income,
net of tax                               530.5              373.3
Total equity attributable to common
shareholders                             8,316.8            8,119.1
Equity attributable to noncontrolling
interests in consolidated entities       732.2              1,018.5
Total equity                             9,049.0            9,137.6
Total liabilities and equity             $17,492.4          $19,347.0

Invesco Ltd.

Reconciliations of Condensed Consolidated Balance Sheet Information Excluding Consolidated
Investment Products to U.S. GAAP Condensed Consolidated Balance Sheets (unaudited, in millions)
                December 31, 2012                         December 31, 2011
                Before                        Total       Before                        Total
                Consolidation  Impact of      (U.S.       Consolidation  Impact of      (U.S.
                (non-GAAP)     Consolidation  GAAP)       (non-GAAP)     Consolidation  GAAP)
ASSETS
Current assets:
Cash and cash
equivalents     $835.5         $—             $835.5      $727.4         $—             $727.4
Cash and cash
equivalents of
consolidated
investment
products        —              287.8          287.8       —              382.3          382.3
Unsettled fund
receivables     550.1          —              550.1       444.4          —              444.4
Accounts
receivable      453.8          (4.4)          449.4       434.6          (10.2)         424.4
Accounts
receivable of
consolidated
investment
products        —              84.1           84.1        —              98.5           98.5
Investments     363.9          —              363.9       283.7          —              283.7
Prepaid assets  50.3           —              50.3        51.2           —              51.2
Other current
assets          94.5           —              94.5        139.2          10.8           150.0
Deferred tax
asset, net      38.4           —              38.4        28.7           —              28.7
Assets held for
policyholders   1,153.6        —              1,153.6     1,243.5        —              1,243.5
Total current
assets          3,540.1        367.5          3,907.6     3,352.7        481.4          3,834.1
Non-current
assets:
Investments     313.4          (66.6)         246.8       293.4          (92.6)         200.8
Investments of
consolidated
investment
products        —              4,550.6        4,550.6     —              6,629.0        6,629.0
Security
deposit assets
and receivables 27.4           —              27.4        81.2           —              81.2
Other
non-current
assets          26.8           —              26.8        17.9           —              17.9
Deferred sales
commissions     47.7           —              47.7        40.5           —              40.5
Property and
equipment, net  349.6          —              349.6       312.8          —              312.8
Intangible
assets, net     1,287.7        —              1,287.7     1,322.8        —              1,322.8
Goodwill        7,048.2        —              7,048.2     6,907.9        —              6,907.9
Total
non-current
assets          9,100.8        4,484.0        13,584.8    8,976.5        6,536.4        15,512.9
Total assets    $12,640.9      $4,851.5       $17,492.4   $12,329.2      $7,017.8       $19,347.0
LIABILITIES AND
EQUITY
Current
liabilities:
Current
maturities of
total debt      $—             $—             $—          $215.1         $—             $215.1
Unsettled fund
payables        552.5          —              552.5       439.6          —              439.6
Income taxes
payable         77.9           —              77.9        59.6           —              59.6
Other current
liabilities     833.6          (8.9)          824.7       861.1          (19.6)         841.5
Other current
liabilities of
consolidated
investment
products        —              104.3          104.3       —              175.1          175.1
Policyholder
payables        1,153.6        —              1,153.6     1,243.5        —              1,243.5
Total current
liabilities     2,617.6        95.4           2,713.0     2,818.9        155.5          2,974.4
Non-current
liabilities:
Long-term debt  1,186.0        —              1,186.0     1,069.6        —              1,069.6
Long-term debt
of consolidated
investment
products        —              3,899.4        3,899.4     —              5,512.9        5,512.9
Deferred tax
liabilities,
net             311.4          —              311.4       274.0          —              274.0
Security
deposits
payable         27.4           —              27.4        81.2           —              81.2
Other
non-current
liabilities     306.2          —              306.2       297.3          —              297.3
Total
non-current
liabilities     1,831.0        3,899.4        5,730.4     1,722.1        5,512.9        7,235.0
Total
liabilities     4,448.6        3,994.8        8,443.4     4,541.0        5,668.4        10,209.4
Equity:
Equity
attributable to
common
shareholders:
Common shares   98.1           —              98.1        98.1           —              98.1
Additional
paid-in-capital 6,141.0        —              6,141.0     6,180.6        —              6,180.6
Treasury shares (1,382.9)      —              (1,382.9)   (1,280.4)      —              (1,280.4)
Retained
earnings        2,780.1        21.2           2,801.3     2,381.3        31.9           2,413.2
Retained
earnings
appropriated
for investors
in consolidated
investment
products        —              128.8          128.8       —              334.3          334.3
Accumulated
other
comprehensive
income, net of
tax             551.4          (20.9)         530.5       404.1          (30.8)         373.3
Total equity
attributable to
common
shareholders    8,187.7        129.1          8,316.8     7,783.7        335.4          8,119.1
Equity
attributable to
noncontrolling
interests in
consolidated
entities        4.6            727.6          732.2       4.5            1,014.0        1,018.5
Total equity    8,192.3        856.7          9,049.0     7,788.2        1,349.4        9,137.6
Total
liabilities and
equity          $12,640.9      $4,851.5       $17,492.4   $12,329.2      $7,017.8       $19,347.0

See pages 23 through 26 for notes to the reconciliation.

Invesco Ltd.

Condensed Consolidated Cash Flow Statement Information Excluding Consolidated
Investment Products

(a non-GAAP presentation, unaudited, in millions)
                                                    Year ended December 31,
                                                    2012          2011
Adjusted operating activities:
U.S. GAAP net income                                $587.3        $622.0
Consolidated investment product net income          100.6         87.5
Net income adjusted to remove impact of CIP         687.9         709.5
Adjustments to reconcile net income to net cash
provided by operating

activities:
Amortization and depreciation                       95.0          117.4
Share-based compensation expense                    136.4         115.1
Gains on disposals of property, equipment, and
software, net                                       (0.9)         (5.8)
Purchase of trading investments                     (10,192.5)    (10,548.6)
Proceeds from sale of trading investments           10,185.3      10,537.6
Other gains and losses, net                         (17.0)        (49.0)
Call premium on debt extinguishment                 (23.0)        —
Tax benefit from share-based compensation           52.2          77.8
Excess tax benefits from share-based compensation   (12.7)        (14.7)
Equity in earnings of unconsolidated affiliates     (29.3)        (30.8)
Dividends from unconsolidated affiliates            15.6          21.3
Changes in operating assets and liabilities:
Decrease/(increase) in receivables                  97.4          204.7
(Decrease)/increase in payables                     (122.3)       (331.7)
Adjusted net cash provided by/(used in) operating
activities                                          872.1         802.8
Adjusted investing activities:
Purchase of property and equipment                  (99.3)        (107.0)
Disposal of property and equipment                  0.6           12.6
Purchase of available-for-sale investments          (97.8)        (31.4)
Sale of available-for-sale investments              68.4          65.2
Purchase of other investments                       (126.4)       (150.4)
Sale of other investments                           83.6          64.6
Returns of capital and distributions from equity
method investments                                  32.0          39.7
Acquisitions of businesses                          —             (14.9)
Acquisition earn-out payments                       (37.2)        (16.8)
Sale of management contracts                        16.4          —
Adjusted net cash provided by/(used in) investing
activities                                          (159.7)       (138.4)
Adjusted financing activities:
Proceeds from exercises of share options            23.0          12.4
Purchases of treasury shares                        (265.0)       (436.5)
Dividends paid                                      (289.0)       (220.9)
Excess tax benefits from share-based compensation   12.7          14.7
Net borrowings/(repayments) under credit facility   47.5          (31.0)
Net proceeds from issuance of senior notes          595.1         —
Repayments of senior notes                          (745.7)       —
Acquisition of interest in consolidated investment
products                                            —             (12.3)
Adjusted net cash (used in)/provided by financing
activities                                          (621.4)       (673.6)
Increase/(decrease) in cash and cash equivalents    91.0          (9.2)
Foreign exchange movement on cash and cash
equivalents                                         17.1          (3.9)
Cash and cash equivalents, beginning of year        727.4         740.5
Cash and cash equivalents, end of year              $835.5        $727.4

Invesco Ltd.

U.S. GAAP Condensed Consolidated Statements of Cash Flows

(Unaudited, in millions)
                                                     Year ended December 31,
                                                     2012         2011
Operating activities:
Net income                                           $587.3       $622.0
Adjustments to reconcile net income to net cash
provided by operating
activities:
Amortization and depreciation                        95.0         117.4
Share-based compensation expense                     136.4        115.1
Gains on disposals of property, equipment, and
software, net                                        (0.9)        (5.8)
Purchase of trading investments                      (10,192.5)   (10,548.6)
Proceeds from sale of trading investments            10,185.3     10,537.6
Other gains and losses, net                          (8.3)        (49.0)
Call premium on debt extinguishment                  (23.0)       —
Losses/(gains) of consolidated investment products,
net                                                  97.7         138.9
Tax benefit from share-based compensation            52.2         77.8
Excess tax benefits from share-based compensation    (12.7)       (14.7)
Equity in earnings of unconsolidated affiliates      (29.7)       (30.5)
Dividends from unconsolidated affiliates             15.6         21.3
Changes in operating assets and liabilities:
Decrease/(increase) in cash held by consolidated
investment products                                  (36.2)       264.2
Decrease/(increase) in receivables                   113.8        213.4
(Decrease)/increase in payables                      (160.7)      (494.3)
Net cash provided by/(used in) operating activities  819.3        964.8
Investing activities:
Purchase of property and equipment                   (99.3)       (107.0)
Disposal of property and equipment                   0.6          12.6
Purchase of available-for-sale investments           (85.9)       (31.4)
Sale of available-for-sale investments               50.6         60.2
Purchase of investments by consolidated investment
products                                             (3,252.0)    (2,991.4)
Sale of investments by consolidated investment
products                                             3,346.8      3,479.0
Purchase of other investments                        (126.0)      (143.4)
Sale of other investments                            83.6         64.6
Returns of capital and distributions from equity
method investments                                   20.0         36.6
Acquisitions of businesses                           —            (14.9)
Acquisition earn-out payments                        (37.2)       (16.8)
Sale of management contracts                         16.4         —
Net cash provided by/(used in) investing activities  (82.4)       348.1
Financing activities:
Proceeds from exercises of share options             23.0         12.4
Purchases of treasury shares                         (265.0)      (436.5)
Dividends paid                                       (289.0)      (220.9)
Excess tax benefits from share-based compensation    12.7         14.7
Capital invested into consolidated investment
products                                             20.0         37.2
Capital distributed by consolidated investment
products                                             (277.0)      (172.4)
Net borrowings/(repayments) of debt of consolidated
investment products                                  232.5        (513.3)
Net borrowings/(repayments) under credit facility    47.5         (31.0)
Net proceeds from issuance of senior notes           595.1        —
Repayments of senior notes                           (745.7)      —
Acquisition of interest in consolidated investment
products                                             —            (12.3)
Net cash provided by/(used in) financing activities  (645.9)      (1,322.1)
Increase/(decrease) in cash and cash equivalents     91.0         (9.2)
Foreign exchange movement on cash and cash
equivalents                                          17.1         (3.9)
Cash and cash equivalents, beginning of year         727.4        740.5
Cash and cash equivalents, end of year               $835.5       $727.4

Invesco Ltd.

Reconciliations of Condensed Consolidated Cash Flow Statement Information Excluding Consolidated
Investment Products to U.S. GAAP Condensed Consolidated Statements of Cash Flows

(unaudited, in millions)
                        Year ended December 31, 2012               Year ended December 31, 2011
                                                                   Before
                        Before         Impact of      Total        Consolidation                 Total
                        Consolidation                                             Impact of
                        (non-GAAP)     Consolidation  (U.S. GAAP)  (non-GAAP)     Consolidation  (U.S. GAAP)
Operating activities:
Net income              $687.9         ($100.6)       $587.3       $709.5         ($87.5)        $622.0
Amortization and
depreciation            95.0           —              95.0         117.4          —              117.4
Share-based
compensation expense    136.4          —              136.4        115.1          —              115.1
Gains on disposals of
property, equipment,
and software, net       (0.9)          —              (0.9)        (5.8)          —              (5.8)
Purchase of trading
investments             (10,192.5)     —              (10,192.5)   (10,548.6)     —              (10,548.6)
Proceeds from sale of
trading investments     10,185.3       —              10,185.3     10,537.6       —              10,537.6
Other gains and losses,
net                     (17.0)         8.7            (8.3)        (49.0)         —              (49.0)
Call premium on debt
extinguishment          (23.0)         —              (23.0)       —              —              —
Losses/(gains) of
consolidated investment
products, net           —              97.7           97.7         —              138.9          138.9
Tax benefit from
share-based
compensation            52.2           —              52.2         77.8           —              77.8
Excess tax benefits
from share-based
compensation            (12.7)         —              (12.7)       (14.7)         —              (14.7)
Equity in earnings of
unconsolidated
affiliates              (29.3)         (0.4)          (29.7)       (30.8)         0.3            (30.5)
Dividends from
unconsolidated
affiliates              15.6           —              15.6         21.3           —              21.3
Changes in operating
assets and liabilities:
Decrease/(increase) in
cash held by CIP        —              (36.2)         (36.2)       —              264.2          264.2
Decrease/(increase) in
receivables             97.4           16.4           113.8        204.7          8.7            213.4
(Decrease)/increase in
payables                (122.3)        (38.4)         (160.7)      (331.7)        (162.6)        (494.3)
Net cash provided
by/(used in) adjusted
operating activities    872.1          (52.8)         819.3        802.8          162.0          964.8
Investing activities:
Purchase of property
and equipment           (99.3)         —              (99.3)       (107.0)        —              (107.0)
Disposal of property
and equipment           0.6            —              0.6          12.6           —              12.6
Purchase of
available-for-sale
investments             (97.8)         11.9           (85.9)       (31.4)         —              (31.4)
Sale of
available-for-sale
investments             68.4           (17.8)         50.6         65.2           (5.0)          60.2
Purchase of investments
by CIP                  —              (3,252.0)      (3,252.0)    —              (2,991.4)      (2,991.4)
Sale of investments by
CIP                     —              3,346.8        3,346.8      —              3,479.0        3,479.0
Purchase of other
investments             (126.4)        0.4            (126.0)      (150.4)        7.0            (143.4)
Sale of other
investments             83.6           —              83.6         64.6           —              64.6
Returns of capital and
distributions from
equity method
investments             32.0           (12.0)         20.0         39.7           (3.1)          36.6
Acquisitions of
businesses              —              —              —            (14.9)         —              (14.9)
Acquisition earn-out
payments                (37.2)         —              (37.2)       (16.8)         —              (16.8)
Sale of management
contracts               16.4           —              16.4         —              —              —
Net cash provided
by/(used in) adjusted
investing activities    (159.7)        77.3           (82.4)       (138.4)        486.5          348.1
Financing activities:
Proceeds from exercises
of share options        23.0           —              23.0         12.4           —              12.4
Purchases of treasury
shares                  (265.0)        —              (265.0)      (436.5)        —              (436.5)
Dividends paid          (289.0)        —              (289.0)      (220.9)        —              (220.9)
Excess tax benefits
from share-based
compensation            12.7           —              12.7         14.7           —              14.7
Capital invested into
CIP                     —              20.0           20.0         —              37.2           37.2
Capital distributed by
CIP                     —              (277.0)        (277.0)      —              (172.4)        (172.4)
Net
borrowings/(repayments)
of debt of CIP          —              232.5          232.5        —              (513.3)        (513.3)
Net
borrowings/(repayments)
under credit facility   47.5           —              47.5         (31.0)         —              (31.0)
Net proceeds from
issuance of senior
notes                   595.1          —              595.1        —              —              —
Repayments of senior
notes                   (745.7)        —              (745.7)      —              —              —
Acquisition of interest
in CIP                  —              —              —            (12.3)         —              (12.3)
Net cash (used
in)/provided by
adjusted financing
activities              (621.4)        (24.5)         (645.9)      (673.6)        (648.5)        (1,322.1)
Increase/(decrease) in
cash and cash
equivalents             91.0           —              91.0         (9.2)          —              (9.2)
Foreign exchange
movement on cash and
cash equivalents        17.1           —              17.1         (3.9)          —              (3.9)
Cash and cash
equivalents, beginning
of year                 727.4          —              727.4        740.5          —              740.5
Cash and cash
equivalents, end of
year                    $835.5         $—             $835.5       $727.4         $—             $727.4

See pages 23 through 26 for notes to the reconciliation.

Invesco Ltd.

Notes

Notes 1 through 8 relate to the income statement reconciliations presented on
pages 12 through 16. Further explanations of the reasons the company considers
it appropriate to present these adjustments in arriving at the non-GAAP
measures can be found in the Form 10-K for the year ended December 31, 2011.

Note 9 relates to the balance sheet and cash flow statement reconciliations on
pages 19 and 22, respectively.

Non-GAAP measures should not be considered as substitutes for any measures
derived in accordance with U.S. GAAP and may not be comparable to other
similarly titled measures of other companies.

1. Acquisition/disposition related adjustments

Acquisition related adjustments are comprised of amounts incurred by the
company in connection with business combinations, including transaction and
integration expenses, intangible asset amortization (including any increased
amortization related to the write-off of related management contract
intangible assets), changes in estimates of acquisition earn-out liabilities
booked from prior acquisitions, gains and losses related to dispositions, and
all related tax effects.

Adjustments related to acquisition and disposition amounts are as follows:

                         Quarterly                 Year-to-date
in millions              Q4-12    Q3-12   Q4-11    Dec 31, 2012  Dec 31, 2011
Equity in earnings of
unconsolidated
affiliates               $ —      $ —     $ —      $   3.5       $   —
Other gains and losses,
net                      —        —       —        (3.5)         —
Service and
distribution fees        —        —       —        —             (5.2)
Third-party
distribution, service
and advisory expenses    —        —       —        —             5.2
Transaction and
integration              2.6      3.0     5.5      8.2           29.4
Taxation on transaction
and integration          (1.0)    (1.1)   (2.1)    (3.1)         (11.2)
Intangible amortization  4.9      5.3     6.1      29.6          42.2
Taxation on
amortization             (0.4)    (0.4)   (1.0)    (2.6)         (4.4)
Prepaid compensation
amortization             —        —       —        —             15.0
Deferred taxation        6.4      6.6     6.3      26.0          27.0
Change in contingent
consideration estimates  —        —       (2.4)    (2.3)         (13.2)
Gain on sale of CLO
management contracts     —        (8.3)   —        (8.3)         —
Taxation on gain on
sale of CLO management
contracts                —        2.5     —        2.5           —
                         $ 12.5   $ 7.6   $ 12.4   $   50.0      $   84.8

2. Third-party distribution, service and advisory expenses

Third-party distribution, service and advisory expenses include renewal
commissions, management fee rebates and distribution costs (12b-1 and
marketing support) paid to brokers and independent financial advisors, which
are all closely linked to the revenue earned by Invesco from AUM but vary
extensively by geography due to differences in distribution channels. The
non-GAAP presentation nets these costs against revenues to arrive at net
revenues, which serves to reflect these costs as revenue sharing activities
and to remove distortions caused by differing distribution channel fees.

3. Proportional share of net revenues and operating income from joint venture
investments

The company has two joint ventures in China. Enhancing operations in China is
one effort that the company believes could improve its competitive position
over time. U.S. GAAP requires classification of the pre-tax joint venture
income as equity in earnings of unconsolidated affiliates. The non-GAAP
adjustment proportionately consolidates these joint ventures, serving to
illustrate the contribution of these joint ventures to the operations of the
business.

4. Consolidated investment products (CIP)

Management and performance fees earned by the company, which were eliminated
from operating revenues upon consolidation of investment products, were $8.6
million in the fourth quarter (third quarter 2012: $11.5 million; fourth
quarter 2011: $11.7 million; 2012: $41.0 million; 2011: $47.3 million). By
deconsolidating these products in the non-GAAP information, the management and
performance fees are added back into net revenues. Similarly, the consolidated
investment products' operating expenses and impact on interest income,
interest expense, gains and losses, and noncontrolling interests are removed
in reconciling from the U.S. GAAP income statement to the non-GAAP
information. The consolidation of the investment products resulted in a
increase of $2.4 million in net income attributable to common shareholders in
the fourth quarter U.S. GAAP earnings (third quarter 2012: $11.1 million
decrease; fourth quarter 2011: $1.9 million increase; 2012: $10.7 million
decrease; 2011: $20.2 million increase). The above adjustments remove this
impact.

5. Market appreciation / depreciation of deferred compensation awards

This adjustment relates to deferred cash compensation that is linked in value
to investment products. The market appreciation of the compensation liability
was $3.3 million in the fourth quarter (third quarter 2012: $4.7 million
appreciation; fourth quarter 2011: $5.5 million appreciation; 2012: $14.3
million appreciation; 2011: $5.8 million appreciation) with an investment
gain, inclusive of interest and dividend income, of $3.5 million in the fourth
quarter (third quarter 2012: $11.1 million gain; fourth quarter 2011: $10.1
million gain; 2012: $24.4 million gain; 2011: $2.2 million gain) on the assets
held to hedge economically the compensation liability. This change in
compensation expense and the investment income are adjusted in arriving at the
non-GAAP information and, net of the applicable taxation charge (fourth
quarter 2012: zero; third quarter 2012: $1.9 million charge; fourth quarter
2011: $1.4 million charge; 2012: $2.7 million charge; 2011: $1.1 million
credit), result in a net income deduction of $0.2 million for the fourth
quarter (third quarter 2012: $4.5 million deduction; fourth quarter 2011: $3.2
million deduction; 2012: $7.4 million deduction; 2011: $2.5 million addition).

6. Other reconciling items

European infrastructure transformational initiative: As announced in 2011, the
company is outsourcing its European transfer agency and is making certain
structural changes to product and distribution platforms. Expenses incurred
related to the European infrastructure activities are excluded in arriving at
the non-GAAP financial information. As part of the outsourcing of the U.K.
transfer agency, operational process changes resulted in an accounting
adjustment recognizing additional distribution expense of $15.3 million in the
fourth quarter and year ended December 31, 2012. The initiative also incurred
$1.9 million in compensation expenses, primarily due to severance costs (third
quarter 2012: $1.3 million; fourth quarter 2011: $1.2 million; 2012: $5.6
million; 2011: $7.6 million); $2.1 million in general and administrative
costs, primarily related to professional contractor services and mutual fund
costs (third quarter 2012: $1.4 million; fourth quarter 2011: $1.5 million;
2012: $7.3 million; 2011: $5.3 million); $0.1 million in marketing costs
(third quarter 2012: $0.6 million; fourth quarter 2011: none; 2012: $1.6
million; 2011: none); and $2.3 million of property, office and technology
costs (third quarter 2012: $0.7 million; fourth quarter 2011: $5.0 million;
2012: $5.8 million; 2011: $5.9 million). The company's income tax provision
included tax benefits of $4.9 million in the fourth quarter 2012 relating to
these charges (third quarter 2012: $0.7 million; fourth quarter 2011: $0.8
million; 2012: $7.5 million; 2011: $1.9 million).

Included within other gains and losses, net for the fourth quarter 2012 is a
loss of $0.1 million related to the mark-to-market of four foreign exchange
put option contracts, purchased in the second quarter 2012, intended to
provide protection against the impact of a significant decline in the pound
sterling/U.S. dollar foreign exchange rate (third quarter 2012: $1.2 million;
2012: $2.5 million).  The cost to the company of these contracts was $2.5
million at their inception date, which represents the company's maximum
exposure to loss from the contracts over the 12-month cumulative contract
period, and contract maturity ranges from September 25, 2012 to June 25, 2013.
The adjustment from U.S. GAAP to non-GAAP earnings for the fourth quarter 2012
is a charge of $0.6 million (third quarter 2012: $0.4 million credit; 2012:
$0.8 million credit) that removes the impact of market volatility; therefore,
the company's non-GAAP results include only the amortization of the cost of
the contracts during the contract period. The related non-GAAP adjustment to
the company's income tax provision is a credit of $0.1 million in the fourth
quarter of 2012 (third quarter 2012: $0.1 million charge; 2012: $0.2 million
charge).

Other gains and losses, net included a charge of $23.5 million in the fourth
quarter of and year ended December 31, 2012 related to the call premiums on
the redemption of the $333.5 million principal amount of 5.375% Senior Notes
due February 27, 2013 and the $197.1 million principal amount of the 5.375%
Senior Notes due December 15, 2014. The company's income tax provision
included a taxation credit of $5.8 million related to the charge.

Included within marketing expenses in 2011 is a credit of $10.4 million
related to the termination of naming rights to the Denver Broncos stadium. The
company's income tax provision included a taxation charge of $4.0 million
relating to the credit.

Included within other gains and losses in the fourth quarter and year ended
December 31, 2011 is a credit of $45.0 million related to a legal settlement.
Included within general and administrative expenses are legal fees associated
with this litigation of $3.6 million. A tax charge of $15.6 million is related
to the settlement, net of legal fees.

Included within general and administrative expenses in the fourth quarter and
year ended December 31, 2011 is a $0.3 million credit related to the final
amount reimbursed associated with the 2010 correction of historic foreign
exchange allocations in the fund accounting process that impacted the
reporting of fund performance in certain funds, together with an associated
$0.1 million tax charge.

Included within general and administrative expenses in the year ended December
31, 2011 is a $0.4 million charge reflecting revisions to a 2010 levy from the
U.K. Financial Services Compensation Scheme. The company's tax provision
included tax benefits of $0.1 million related to this revision.

Due to the unique character and magnitude of these items, their impact has
been excluded in calculating the non-GAAP financial measures.

7. Definition of operating margin and adjusted operating margin

Operating margin is equal to operating income divided by operating revenues.
Adjusted operating margin is equal to adjusted operating income divided by net
revenues.

8. Definition of adjusted diluted EPS

Adjusted diluted EPS is equal to adjusted net income attributable to common
shareholders divided by the weighted average number of shares outstanding.

9. Balance sheets and cash flow statements excluding CIP

U.S. GAAP condensed consolidating balance sheets and condensed consolidated
statements of cash flows reflect the consolidation of investment products. The
majority of the company's consolidated investment products balances were
CLO-related as of December 31, 2012 and December 31, 2011. The collateral
assets of the CLOs are held solely to satisfy the obligations of the CLOs. The
company has no right to the benefits from, nor does it bear the risks
associated with, the collateral assets held by the CLOs, beyond the company's
minimal direct investments in, and management fees generated from, CLOs. If
the company were to liquidate, the collateral assets would not be available to
the general creditors of the company, and as a result, the company does not
consider them to be company assets. Additionally, the investors in the CLOs
have no recourse to the general credit of the company for the notes issued by
the CLOs. The company therefore does not consider this debt to be a company
liability. Similarly, cash held by consolidated investment products is not
available for general use by Invesco, nor is Invesco cash available for
general use by its consolidated investment products.

By deconsolidating the consolidated investment products in the condensed
consolidated balance sheet information excluding consolidated investment
products, the assets, liabilities and equity of the consolidated investment
products are removed and the company's equity interest in the investment
products, accounted for as equity method and available-for-sale investments,
are replaced. The company considers this a more representative presentation of
the company's financial position, and calculations made therefrom, such as
debt-to-equity ratios, are more meaningful excluding these balances.

The condensed consolidated cash flow statement information excluding
consolidated investment products present the cash flows of the company
separately and before consolidation of investment products, as the cash flows
of consolidated investment products do not form part of the company's cash
flow management processes, nor do they form part of the company's significant
liquidity evaluations and decisions for the reasons noted.

Invesco Ltd.

Quarterly Assets Under Management
(in billions)                             Q4-12    Q3-12    % Change  Q4-11
Beginning Assets                          $683.0   $646.6   5.6    %  $598.4
Long-term inflows                         41.7     42.3     (1.4)  %  41.1
Long-term outflows                        (40.8)   (32.9)   24.0   %  (35.5)
Long-term net flows                       0.9      9.4      (90.4) %  5.6
Net flows in institutional money market
funds                                     0.1      2.3      (95.7) %  0.4
Market gains and losses/reinvestment      4.9      22.1     (77.8) %  20.8
Acquisitions/dispositions, net            —        (1.7)    N/A       —
Foreign currency translation              (1.2)    4.3      N/A       0.1
Ending Assets                             $687.7   $683.0   0.7    %  $625.3
Average long-term AUM                     $610.6   $599.8   1.8    %  $552.1
Average institutional money market AUM    69.6     68.1     2.2    %  69.6
Average AUM                               $680.2   $667.9   1.8    %  $621.7
Gross revenue yield on AUM^(a)            64.5bps  62.6bps            64.5bps
Gross revenue yield on AUM before
performance fees^(a)                      63.4bps  62.5bps            62.9bps
Net revenue yield on AUM^(b)              45.6bps  44.0bps            46.1bps
Net revenue yield on AUM before
performance fees^(b)                      44.4bps  43.8bps            44.6bps

(in billions)                              Total AUM  Active^(e)  Passive^(e)
September 30, 2012                         $683.0     $565.1      $117.9
Long-term inflows                          41.7       29.1        12.6
Long-term outflows                         (40.8)     (27.3)      (13.5)
Long-term net flows                        0.9        1.8         (0.9)
Net flows in institutional money market
funds                                      0.1        0.1         —
Market gains and losses/reinvestment       4.9        7.5         (2.6)
Foreign currency translation               (1.2)      (0.8)       (0.4)
December 31, 2012                          $687.7     $573.7      $114.0
Average AUM                                $680.2     $566.6      $113.6
Gross revenue yield on AUM^(a)             64.5bps    75.5bps     10.0bps
Net revenue yield on AUM^(b)               45.6bps    52.8bps     10.0bps

                                                               Private Wealth
By channel: (in billions)     Total    Retail   Institutional  Management
September 30, 2012            $683.0   $423.4   $240.0         $19.6
Long-term inflows             41.7     32.8     7.5            1.4
Long-term outflows            (40.8)   (33.2)   (6.9)          (0.7)
Long-term net flows           0.9      (0.4)    0.6            0.7
Net flows in institutional
money market funds            0.1      —        0.1            —
Market gains and
losses/reinvestment           4.9      2.6      2.7            (0.4)
Foreign currency translation  (1.2)    0.2      (1.4)          —
December 31, 2012             $687.7   $425.8   $242.0         $19.9

See the footnotes immediately following these tables.

Invesco Ltd.

Quarterly Assets Under Management (continued)
                                                         Money
By asset class: (in                   Fixed              Market
billions)           Total    Equity   Income   Balanced  ^(d)    Alternatives^(c)
September 30, 2012  $683.0   $300.6   $167.0   $57.9     $73.2   $84.3
Long-term inflows   41.7     19.3     9.5      6.3       0.6     6.0
Long-term outflows  (40.8)   (25.0)   (6.1)    (2.4)     (0.7)   (6.6)
Long-term net flows 0.9      (5.7)    3.4      3.9       (0.1)   (0.6)
Net flows in
institutional money
market funds        0.1      —        —        —         0.1     —
Market gains and
losses/reinvestment 4.9      2.9      1.7      0.3       0.1     (0.1)
Foreign currency
translation         (1.2)    (0.4)    (0.2)    —         —       (0.6)
December 31, 2012   $687.7   $297.4   $171.9   $62.1     $73.3   $83.0

                                                          Continental
By client domicile:
(in billions)          Total    U.S.     Canada  U.K.     Europe       Asia
September 30, 2012     $683.0   $474.5   $25.0   $99.6    $35.6        $48.3
Long-term inflows      41.7     27.9     1.3     3.3      5.8          3.4
Long-term outflows     (40.8)   (29.4)   (1.3)   (3.4)    (3.9)        (2.8)
Long-term net flows    0.9      (1.5)    —       (0.1)    1.9          0.6
Net flows in
institutional money
market funds           0.1      0.4      (0.1)   (0.2)    —            —
Market gains and
losses/reinvestment    4.9      (0.6)    0.6     1.9      1.1          1.9
Foreign currency
translation            (1.2)    —        (0.3)   0.7      0.2          (1.8)
December 31, 2012      $687.7   $472.8   $25.2   $101.9   $38.8        $49.0

See the footnotes immediately following these tables.

Invesco Ltd.

Year-to-Date Assets Under Management
(in billions)                                    2012      2011      % Change
Beginning Assets                                 $625.3    $616.5    1.4    %
Long-term inflows                                164.0     177.6     (7.7)  %
Long-term outflows                               (151.6)   (158.4)   (4.3)  %
Long-term net flows                              12.4      19.2      (35.4) %
Net flows in institutional money market funds    0.1       5.3       (98.1) %
Market gains and losses/reinvestment             48.8      (15.3)    N/A
Acquisitions/dispositions, net                   (1.7)     —         N/A
Foreign currency translation                     2.8       (0.4)     N/A
Ending Assets                                    $687.7    $625.3    10.0   %
Average long-term AUM                            $595.4    $566.0    5.2    %
Average institutional money market AUM           69.0      68.3      1.0    %
Average AUM                                      $664.4    $634.3    4.7    %
Gross revenue yield on AUM^(a)                   63.2bps   64.9bps
Gross revenue yield on AUM before performance
fees^(a)                                         62.3bps   64.3bps
Net revenue yield on AUM^(b)                     44.5bps   45.7bps
Net revenue yield on AUM before performance
fees^(b)                                         43.6bps   45.1bps

(in billions)                              Total AUM  Active^(e)  Passive^(e)
December 31, 2011                          $625.3     $529.0      $96.3
Long-term inflows                          164.0      106.6       57.4
Long-term outflows                         (151.6)    (105.3)     (46.3)
Long-term net flows                        12.4       1.3         11.1
Net flows in institutional money market
funds                                      0.1        0.1         —
Market gains and losses/reinvestment       48.8       41.8        7.0
Acquisitions/dispositions, net             (1.7)      (1.7)       —
Foreign currency translation               2.8        3.2         (0.4)
December 31, 2012                          $687.7     $573.7      $114.0
Average AUM                                $664.4     $554.2      $110.2
Gross revenue yield on AUM^(a)             63.2bps    73.9bps     9.3bps
Net revenue yield on AUM^(b)               44.5bps    51.6bps     9.3bps

                                                                   Private
                                                                   Wealth
By channel: (in billions)       Total     Retail    Institutional  Management
December 31, 2011               $625.3    $373.9    $233.5         $17.9
Long-term inflows               164.0     131.7     28.0           4.3
Long-term outflows              (151.6)   (121.3)   (27.7)         (2.6)
Long-term net flows             12.4      10.4      0.3            1.7
Net flows in institutional
money market funds              0.1       —         0.1            —
Market gains and
losses/reinvestment             48.8      37.3      11.2           0.3
Acquisitions/dispositions, net  (1.7)     —         (1.7)          —
Foreign currency translation    2.8       4.2       (1.4)          —
December 31, 2012               $687.7    $425.8    $242.0         $19.9

See the footnotes immediately following these tables.

Invesco Ltd.

Year-to-Date Assets Under Management (continued)
                                                                 Money
By asset class: (in                           Fixed              Market
billions)                  Total     Equity   Income   Balanced  ^(d)    Alternatives^(c)
December 31, 2011          $625.3    $271.0   $149.0   $44.6     $74.0   $86.7
Long-term inflows          164.0     81.4     38.9     21.5      2.7     19.5
Long-term outflows         (151.6)   (90.7)   (25.8)   (8.5)     (3.4)   (23.2)
Long-term net flows        12.4      (9.3)    13.1     13.0      (0.7)   (3.7)
Net flows in institutional
money market funds         0.1       —        —        —         0.1     —
Market gains and
losses/reinvestment        48.8      33.3     9.4      3.8       (0.1)   2.4
Acquisitions/dispositions,
net                        (1.7)     —        —        —         —       (1.7)
Foreign currency
translation                2.8       2.4      0.4      0.7       —       (0.7)
December 31, 2012          $687.7    $297.4   $171.9   $62.1     $73.3   $83.0

                                                                Continental
By client domicile: (in
billions)                  Total     U.S.      Canada  U.K.     Europe       Asia
December 31, 2011          $625.3    $430.0    $23.4   $89.8    $32.0        $50.1
Long-term inflows          164.0     113.7     3.8     13.4     20.6         12.5
Long-term outflows         (151.6)   (101.5)   (5.0)   (15.2)   (14.9)       (15.0)
Long-term net flows        12.4      12.2      (1.2)   (1.8)    5.7          (2.5)
Net flows in institutional
money market funds         0.1       0.6       0.1     (0.2)    —            (0.4)
Market gains and
losses/reinvestment        48.8      30.0      2.3     10.4     2.5          3.6
Acquisitions/dispositions,
net                        (1.7)     —         —       —        (1.7)        —
Foreign currency
translation                2.8       —         0.6     3.7      0.3          (1.8)
December 31, 2012          $687.7    $472.8    $25.2   $101.9   $38.8        $49.0

See the footnotes immediately following these tables.

Invesco Ltd.

Quarterly Assets Under Management - Passive
(in billions)                             Q4-12    Q3-12    % Change  Q4-11
Beginning Assets                          $117.9   $107.6   9.6    %  $87.4
Long-term inflows                         12.6     16.0     (21.3) %  19.5
Long-term outflows                        (13.5)   (10.2)   32.4   %  (137)
Long-term net flows                       (0.9)    5.8      N/A       5.8
Net flows in institutional money market
funds                                     —        —        N/A       —
Market gains and losses/reinvestment      (2.6)    4.4      N/A       3.0
Foreign currency translation              (0.4)    0.1      N/A       0.1
Ending Assets                             $114.0   $117.9   (3.3)  %  $96.3
Average long-term AUM                     113.6    113.6    —         93.6
Average institutional money market AUM    —        —        N/A       —
Average AUM                               $113.6   $113.6   —         $93.6
Gross revenue yield on AUM^(a)            10.0bps  9.5bps             10.6bps
Gross revenue yield on AUM before
performance fees^(a)                      10.0bps  9.5bps             10.6bps
Net revenue yield on AUM^(b)              10.0bps  9.5bps             10.6bps
Net revenue yield on AUM before
performance fees^(b)                      10.0bps  9.5bps             10.6bps

                                                               Private Wealth

By channel: (in billions)     Total    Retail   Institutional  Management
September 30, 2012            $117.9   $94.7    $23.2          $—
Long-term inflows             12.6     12.2     0.4            —
Long-term outflows            (13.5)   (13.0)   (0.5)          —
Long-term net flows           (0.9)    (0.8)    (0.1)          —
Net flows in institutional
money market funds            —        —        —              —
Market gains and
losses/reinvestment           (2.6)    (2.7)    0.1            —
Foreign currency translation  (0.4)    —        (0.4)          —
December 31, 2012             $114.0   $91.2    $22.8          $—

                                                        Money
By asset class: (in                   Fixed
billions)           Total    Equity   Income  Balanced  Market  Alternatives^(c)
September 30, 2012  $117.9   $59.2    $37.6   $—        $—      $21.1
Long-term inflows   12.6     9.5      2.5     —         —       0.6
Long-term outflows  (13.5)   (11.0)   (1.0)   —         —       (1.5)
Long-term net flows (0.9)    (1.5)    1.5     —         —       (0.9)
Net flows in
institutional money
market funds        —        —        —       —         —       —
Market gains and
losses/reinvestment (2.6)    (2.2)    (0.1)   —         —       (0.3)
Foreign
curren*Story too
large*

[TRUNCATED]
 
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