Slide 1: Franklin Resources, Inc. Second Quarter 2025 Results
Franklin Resources, Inc. Second Quarter 2025 Results May 2, 2025 | Investor Presentation Jenny Johnson Matthew Nicholls Adam Spector President Executive Vice President Executive Vice President Chief Executive Officer Chief Financial Officer Head of Global Distribution Chief Operating Officer
Slide 2: Forward-looking statements and non-GAAP financial information
Forward-looking statements and non-GAAP financial information This commentary contains forward-looking statements that involve a number of known and unknown risks, uncertainties and other important factors. This commentary also contains non-GAAP financial measures. For the reconciliations from US GA
Slide 3: Second Quarter 2025 Business Highlights
Second Quarter 2025 Business Highlights Franklin Templeton is one of the most comprehensive global asset managers with $1.54 trillion in AUM; diversified by specialist investment manager, asset class, vehicle, and geography • Long-term inflows increased 9% from the prior quarter excluding reinvested
Slide 4: Second Quarter 2025 Financial Summary
Second Quarter 2025 Financial Summary1 Key metrics (in US$ millions, except AUM in billions and per share data) Q2 2025 Q1 2025 Q2 2024 2 Ending AUM $ 1,540.6 $ 1,575.7 $ 1,644.7 Average AUM2 1,570.5 1,634.5 1,581.1 Adj. revenue 1,610.2 1,682.7 1,665.1 Adj. operating income 377.2 412.8 419.6 Adj. ne
Slide 5: Second Quarter 2025 AUM and Investment Performance
Second Quarter 2025 AUM and Investment Performance
Slide 6: Diversification by Asset Class, Client Type, Region, and Specialist Investment Manager
Diversification by Asset Class, Client Type, Region, and Specialist Investment Manager (“SIM”) AUM by asset class, client type, and region Q2 Adjusted Operating Revenue by SIM AUM of $1.54 trillion as of March 31, 2025 As of March 31, 2025 Cash 4% HNW 3% 11% Americas 7% Multi-Asset 11% APAC 10% AllA
Slide 7: Investment Performance Summary
Investment Performance Summary Percentage of AUM above peer median and benchmark1 As of March 31, 2025 63% 58% 60% 55% 56% 56% 52% 43% 1-year 3-year 5-year 10-year Mutual funds vs. peers Strategy composites vs. benchmark • Mutual Funds: Compared to the prior quarter, investment performance increased
Slide 8: AUM and Flows
AUM and Flows1 (in US$ billions, for the three months ended) Total AUM: $1.54 trillion 96.9 84.9 82.7 82.5 86.8 3.1 20.1 3.3 3.6 3.2 6.9 17.9 2.8 3.3 5.7 7.4 (3.2) (31.3) (26.2) (50.0) (78.0) (85.9) (113.8) (113.0) (146.9) 2 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Long-term Long-term Long-term net Ex-Wes
Slide 9: AUM and Flows
AUM and Flows (in US$ billions, for the three months ended) Equity: $598 billion Fixed Income: $446 billion 55.9 43.8 36.8 38.9 37.4 33.0 27.5 32.0 26.4 26.5 12.5 8.3 3.6 0.8 1.7 1.4 0.3 2.8 (5.3) (1.6) (5.4) (4.8) (32.8) (33.6) (35.5) (30.5) (36.0) (43.4) (44.3) (42.2) (33.9) (57.0) (66.9) (66.7) (
Slide 10: AUM and Flows
AUM and Flows (in US$ billions, for the three months ended) Alternative: $252 billion Multi-Asset: $176 billion 3 8.5 12.9 11.2 10.2 9.9 6.6 8.7 3.4 3.4 4.0 3.4 6.4 0.8 2.9 2.8 3.4 3.3 1.0 1.4 1.8 1.6 1.4 1.7 0.7 (1.0) (2.1) (2.4) (2.0) (2.6) (5.9) (5.0) (7.3) (8.1) (7.8) (9.6) 1 2 Mar-24 Jun-24 Sep
Slide 11: Second Quarter 2025 Financial Results
Second Quarter 2025 Financial Results
Slide 12: Financial Results
Financial Results1 (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) 2 2 US GAAP Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 US GAAP Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Operating 129.3 222.5 (150.7) 219.0 145.6 Net Income 124.2 174.0 (84.7) 163.6 151.4 Income Operating 6.0%
Slide 13: Financial Results
Financial Results1 (Non-GAAP in US$ millions except EFR) Adjusted operating revenue and effective fee rate2 Adjusted operating expenses 38.5 37.5 37.4 37.2 38.3 1,665 1,654 1,717 1,683 1,610 1,246 1,229 1,265 1,270 1,233 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Adj Opera
Slide 14: Capital Management
Capital Management Dividends and share repurchases Allocation of cash and investments1 Debt3 (In US$ millions, for the trailing twelve months ended) (In US$ billions, as of March 31, 2025) (In US$ millions, as of March 31, 2025) 360 6.1 309 274 221 220 3.1 850 656 671 677 682 643 0.4 2.6 550 450 350
Slide 15: Appendix
Appendix
Slide 16: AUM and Flows
AUM and Flows Mar 31, Dec 31, Mar 31, 1 3 (In US$ billions) 2025 2024 % Change 2024 % Change Beginning AUM $1,575.7 $1,678.6 (6.1%) $1,455.5 8.3% Long-term inflows 86.8 96.9 (10.4%) 84.9 2.2% Long-term outflows (113.0) (146.9) (23.1%) (78.0) 44.9% Long-term net flows (26.2) (50.0) (47.6%) 6.9 NM Cas
Slide 17: Alternative AUM Roll Forward
Alternative AUM Roll Forward (in US$ billions) Three months ended March 31, 2025 Private Markets1 Liquid & Other Total Beginning Balance $228.8 $20.0 $248.8 Fundraising1 6.1 0.7 6.8 Outflows (1.0) (1.1) (2.1) Realizations & distributions2 (2.8) (0.0) (2.8) Net market change, FX, other (0.1) 1.2 1.1
Slide 18: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Revenues1 Mar-25 Mar-25 Adjusted vs. Adjusted vs. Mar-25 Mar-25 Dec-24 Dec-24 Mar-24 Mar-24 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment management fees, ex. 1,601.7
Slide 19: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Mar-25 Mar-25 Expenses1 Adjusted vs. Adjusted vs. Mar-25 Mar-25 Dec-24 Dec-24 Mar-24 Mar-24 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Compensation & benefits 920.0 (87.0) 83
Slide 20: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Other Income (Expense), Net1 Mar-25 Mar-25 Adjusted vs. Adjusted vs. Mar-25 Mar-25 Dec-24 Dec-24 Mar-24 Mar-24 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment and other
Slide 21: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended March 31, 2025 Sales, Consolidated Special Unrealized Deferred Tax Expense US GAAP distribution Acquisition- Non-GAAP (in US$ millions except per share data) Investment Termination investment Comp Plan of Basis and related Basi
Slide 22: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended December 31, 2024 Consolidated Sales, Special Unrealized US GAAP Acquisition- Deferred Comp Tax Expense of Non-GAAP (in US$ millions except per share data) Investment distribution and Termination investment Basis related Plan a
Slide 23: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended March 31, 2024 Consolidated Sales, Special Unrealized US GAAP Acquisition- Deferred Comp Tax Expense of Non-GAAP (in US$ millions except per share data) Investment distribution and Termination investment Basis related Plan and