Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Q3 2023 Earnings Presentation
16 slides from Franklin Resources's earnings presentation, Jul 28, 2023
Slide 1: Franklin Resources, Inc. Third Quarter Results
Franklin Resources, Inc. Third Quarter Results July 28, 2023 | Executive earnings commentary 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 Con
Slide 2: Third quarter highlights: key metrics
Third quarter highlights Key metrics ($ in millions, except AUM in billions % Change (except adj. EFR and margin) and per share data) Q3 2023 vs. Q2 2023 vs. Q3 2022 Ending AUM1 $1,431.5 0.7% 3.7% Average AUM1 1,419.6 0.0% (1.4%) Adj. revenue 1,562.7 2.7% (2.6%) Adj. operating income 476.8 8.3% (15.
Slide 3: Third quarter highlights: financial results
Third quarter highlights Financial results • Ending AUM was $1.43 trillion as of June 30, 2023, an increase of 0.7% from the prior quarter and 3.7% from the prior year quarter. • Adjusted operating revenues were $1.56 billion, a 2.7% increase from the prior quarter and a 2.6% decrease from the prior
Slide 4: Third quarter highlights: AUM and flows, cont'd
Third quarter highlights AUM and Flows, Cont’d. • Regional diversification: We continued to benefit from our regionally focused model and strategy, which resulted in improving flow trends across all our geographies compared to the prior quarter. This quarter, the EMEA and Asia-Pacific regions genera
Slide 5: AUM and investment performance
AUM and investment performance Diversified by asset class, Percentage of AUM above client type and region peer median and benchmark1 AUM of $1.43 trillion as June 30, 2023 As of June 30, 2023 Cash 5% HNW 2% Americas 8% Multi-Asset 10% APAC 9% 66% 67% 63% 63% Alternative EMEA 11% 58% 18% Retail 50% 5
Slide 6: AUM and flows
AUM and flows Jun 30, Mar 31, Jun 30, (In US$ billions)1 2023 2023 % Change 2022 % Change Beginning AUM $1,422.1 $1,387.7 2% $1,477.5 (4%) Long-term inflows 67.4 61.8 9% 77.4 (13%) Long-term outflows (67.2) (65.5) 3% (97.2) (31%) Long-term net flows 0.2 (3.7) NM (19.8) NM Cash management net flows (
Slide 7: Long-term flows by asset class
Fixed Income: $505 billion Equity: $458 billion (in US$ billions, for the three months ended) (in US$ billions, for the three months ended) 35.2 28.5 31.5 26.5 26.2 24.5 27.2 22.6 23.0 17.1 1.8 0.3 (3.1) (3.0) (6.0) (8.3) (9.2) (14.3) (16.1) (13.3) (26.9) (25.4) (26.0) (29.7) (29.6) (28.6) (33.7) (4
Slide 8: Financial results
Financial results1 (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) US GAAP Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 US GAAP Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Operating Net 404.7 348.5 194.0 255.1 314.9 256.4 232.7 165.6 194.2 227.5 Income Income Operating Diluted 19.
Slide 9: Revenues
Revenues1 (GAAP and non-GAAP in US$ millions except per share data, for the three months) Jun-23 Jun-23 Adjusted Adjusted vs. vs. Jun-23 Jun-23 Mar-23 Mar-23 Jun-22 Jun-22 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment management fees, ex. 1,487.5 (92.5) 1,395.0 1,366.0
Slide 10: Expenses
Expenses1 (GAAP and non-GAAP in US$ millions except per share data, for the three months) Jun-23 Jun-23 Adjusted Adjusted vs. vs. Jun-23 Jun-23 Mar-23 Mar-23 Jun-22 Jun-22 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Compensation & benefits 841.2 (67.3) 773.9 763.3 1% 730.8 6% Sa
Slide 11: Other Income (Expense), Net
Other Income (Expense), Net1 (GAAP and non-GAAP in US$ millions except per share data, for the three months) Jun-23 Jun-23 Adjusted Adjusted vs. vs. Jun-23 Jun-23 Mar-23 Mar-23 Jun-22 Jun-22 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment and other income, net 51.2 (8.3)
Slide 12: Capital management
Capital management Dividends and share repurchases Allocation of cash and investments1 (In US$ millions, for the trailing twelve months ended) (In US$ billions, as of June 30, 2023) 6.9 224 181 173 96 96 3.1 598 604 610 587 592 0.3 3.5 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Total cash Product Regulatory
Slide 13: Appendix: reconciliation, three months ended June 30, 2023
Appendix Reconciliation of US GAAP results to Non-GAAP results: Three months ended June 30, 2023 Consolidated Sales, Special Unrealized US GAAP Acquisition- Deferred Comp Non-GAAP (in US$ millions except per share data) Investment distribution and Termination investment Basis related Plan and other
Slide 14: Appendix: reconciliation, three months ended March 31, 2023
Appendix Reconciliation of US GAAP results to Non-GAAP results: Three months ended March 31, 2023 Consolidated Sales, Special Unrealized US GAAP Acquisition- Deferred Comp Non-GAAP (in US$ millions except per share data) Investment distribution and Termination investment Basis related Plan and other
Slide 15: Appendix: reconciliation, three months ended June 30, 2022
Appendix Reconciliation of US GAAP results to Non-GAAP results: Three months ended June 30, 2022 Consolidated Sales, Special Unrealized US GAAP Acquisition- Deferred Comp Non-GAAP (in US$ millions except per share data) Investment distribution and Termination investment Basis related Plan and other
Slide 16: Appendix: forward-looking statements
Appendix Some of the statements herein may include forward-looking statements that reflect our current views with respect to future events, financial performance and market conditions. Such statements are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of