Slide 1: FY17 executive summary
1 Represents percentage of AUM outperforming the relevant benchmark. Full performance disclosures detailed in the appendix on slide 26. 2 Data presents pro forma net flows, AUM and results of JHG as if the merger had occurred at the beginning of the period shown. 3 See adjusted financial measures re
Slide 2: 4Q17 and FY17 results presentation: 4Q17 business update
Andrew Formica Co-Chief Executive Officer 4Q17 and FY17 results presentation 4Q17 business update
Slide 3: 4Q17 highlights
4Q17 highlights Long-term investment performance remains strong AUM increased to US$370.8bn, up 3% Adjusted diluted EPS of US$0.73 driven by strong revenue growth and financial discipline Declared US$0.32 per share dividend 4Q17 3Q17 3 year investment performance¹ 66% 77% Net flows (US$2.9bn) US$0.7
Slide 4: Strong long-term investment performance
Capability 1 year 3 years 5 years Equities Fixed Income Quantitative Equities Multi-Asset Alternatives Total Investment performance Strong long-term investment performance % of AUM outperforming benchmark (31 Dec 2016 to 31 Dec 2017) % of AUM outperforming benchmark (as at 31 Dec 2017) Note: Represe
Slide 5: Total flows
Total flows Total flows 1Q16 to 4Q17 (US$bn) 23% 20% 26% 24% 24% (25%) (24%) (28%) (33%) (26%) 23% (24%) Note: Data for periods prior to and including 2Q17 presents pro forma flows of JHG as if the merger had occurred at the beginning of the period shown. 1 Annualised gross sales and redemption rate
Slide 6: 4Q17 flows by capability
4Q17 flows by capability 26% 6% 14% 45% 24% (25%) (19%) (17%) (56%) (25%) 4Q17 flows by capability (US$bn) Annualised gross sales¹ Annualised gross redemptions¹ 1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM. Redemptions Sales Net sales / (redemption
Slide 7: Financial update
Roger Thompson Chief Financial Officer 4Q17 and FY17 results presentation Financial update
Slide 8: Statement of income
US$m 3 months ended 31 Dec 2017 Year ended 31 Dec 2017 US GAAP Adjustments Adjusted US GAAP Pro forma US GAAP Adjustments Pro forma adjusted Revenue Management fees 493.9 1,465.1 1,853.5 Performance fees 33.5 103.9 84.7 Shareowner servicing fees 31.4 71.5 119.7 Other revenue 33.2 103.2 124.7 Total r
Slide 9: Financial highlights
Financial highlights 4Q17 3Q17 Change 4Q17 vs 3Q17 FY17 Pro forma FY16 Pro forma Change FY17 vs FY16 Average AUM 366.1bn 352.7bn 4% 346.5bn 318.3bn 9% Total revenue 592.0m 537.4m 10% 2,182.6m 2,010.6m 9% Operating income 196.6m 138.2m 42% 529.2m 486.9m 9% Operating margin 33.2% 25.7% 7.5ppt 24.2% 24
Slide 10: Revenue
Revenue Strong revenue growth driven by performance fees and management fees Pro forma adjusted revenue – FY16 vs FY17 (US$m) +11% 1,668.5 1,848.1 4Q17 revenue drivers 3% increase in management fees driven by higher average AUM 4Q17 group average net¹ management fee margin of 44.9bps (3Q17: 45.2bps)
Slide 11: Adjusted operating expenses – 4Q17 versus 3Q17
Adjusted operating expenses – 4Q17 versus 3Q17 (US$m) Operating expenses US$m 4Q17 US GAAP Adj. 4Q17 adjusted 3Q17 adjusted Change 4Q17 adjusted vs 3Q17 adjusted Notes to adjustments Employee compensation and benefits 172.6 (9.6) 163.0 161.4 1% Severance and contractor fees (integration) Long-term i
Slide 12: Profitability
Profitability Focus remains on delivering sustainable profit Pro forma adjusted operating income and margin (US$m unless otherwise stated) Pro forma adjusted net income and EPS (US$m, except per share data) Note: Data for periods prior to and including 2Q17 presents the results of JHG as if the merg
Slide 13: Balance sheet
379 Balance sheet At 31 Dec 2017, cash and investment securities totalled US$1,494m compared to outstanding debt of US$379m Cash and investment securities increased 6% as strong cash flow generation was partially offset by dividend payment and convertible debt repayment Total debt outstanding declin
Slide 14: 2017 achievements
2017 achievements Janus Henderson: setting the foundation for growth Investment performance Client relationships Financial discipline Successful investment team integration and collaboration Improvement in Group investment performance and minimal disruption to investment teams 4Q17: 76% and 66% of A
Slide 15: 2018 priorities
2018 priorities Focus on achieving organic growth by being a trusted partner for clients, delivering first class investment performance, insights and experiences Leverage our enhanced distribution strength and product breadth to deliver on revenue synergies Continue to execute on integration and del
Slide 16: Focus on strategy
Focus on strategy Culture drives success Investment excellence is paramount Client centric organisation Client experience and partnership Embracing technological innovation and efficiency Looking forward
Slide 17: Focus on strategy
Focus on strategy Looking forward * Culture drives success + Investment excellence is paramount * Client centric organisation * Client experience and partnership + Embracing technological innovation and efficiency Janus Henderson
Slide 18: Q&A
Q&A Janus Henderson
Slide 19: Assets under management as at Dec 2017
Assets under management as at 31 Dec 2017 By client type By capability By client location US$189.7bn US$80.1bn US$49.9bn US$31.6bn US$19.5bn US$62.0bn US$164.1bn US$144.7bn US$192.8bn US$120.2bn US$57.8bn AUM: US$370.8bn 51% 22% 13% 9% 5% Equities Fixed Income Quantitative Equities Multi-Asset Alter
Slide 20: Investment management capabilities
Investment management capabilities Diversified product range Equities US$189.7bn AUM 31 Dec 2017 US$370.8bn Fixed Income US$80.1bn Multi-Asset US$31.6bn Self-directed Intermediary Intermediary Institutional Institutional Institutional Institutional Quantitative Equities US$49.9bn Self-directed Self-
Slide 21: Flows: Equities and Fixed Income
Flows: Equities and Fixed Income Equities (US$bn) Fixed Income (US$bn) 26% 22% 26% (26%) (28%) (23%) 38% 31% 28% (36%) (30%) (33%) Redemptions Sales Net sales / (redemptions) Note: Data for periods prior to and including 2Q17 presents pro forma flows of JHG as if the merger had occurred at the begin
Slide 22: Flows: Quantitative Equities, Multi-Asset and Alternatives
Flows: Quantitative Equities, Multi-Asset and Alternatives Quantitative Equities (US$bn) Multi-Asset (US$bn) Alternatives (US$bn) 15% 12% 8% 26% 6% (45%) (45%) (35%) (22%) (20%) (21%) (22%) (58%) (22%) Note: Data for periods prior to and including 2Q17 presents pro forma flows of JHG as if the merge
Slide 23: Total net flows by capability
Total net flows by capability (1.9) (3.2) (2.1) (7.0) (1.0) Total net flows by capability 1Q16 to 4Q17 (US$bn) (1.2) Note: Data for periods prior to and including 2Q17 presents pro forma flows of JHG as if the merger had occurred at the beginning of the period shown. 0.7 (2.9) 1Q16 2Q16 3Q16 4Q16 1Q
Slide 24: AUM and flows by capability
AUM and flows by capability Note: Data for periods prior to and including 2Q17 presents pro forma AUM and flows of JHG as if the merger had occurred at the beginning of the period shown. All data in US$bn Equities Fixed Income Quantitative Equities Multi-Asset Alternatives Total AUM 30 Sep 2016 153.
Slide 25: Investment performance
Investment performance Capability 4Q16 1Q17 2Q17 3Q17 4Q17 1yr 3yr 5yr 1yr 3yr 5yr 1yr 3yr 5yr 1yr 3yr 5yr 1yr 3yr 5yr Equities 30% 57% 74% 38% 64% 73% 68% 77% 84% 61% 73% 82% 64% 60% 67% Fixed Income 90% 93% 96% 92% 90% 93% 93% 92% 91% 92% 91% 97% 93% 95% 98% Quantitative Equities 7% 5% 40% 0% 12%
Slide 26: Mutual fund investment performance
Mutual fund investment performance Capability 4Q16 1Q17 2Q17 3Q17 4Q17 1yr 3yr 5yr 1yr 3yr 5yr 1yr 3yr 5yr 1yr 3yr 5yr 1yr 3yr 5yr Equities 49% 80% 75% 47% 88% 70% 53% 87% 90% 56% 71% 88% 63% 59% 87% Fixed Income 36% 42% 96% 37% 43% 98% 38% 41% 98% 81% 49% 98% 43% 36% 87% Quantitative Equities 30% 7
Slide 27: US GAAP income statement
US$m, except per share data or as noted 3 months ended Year ended 31 Dec 2017 30 Sep 2017 31 Dec 2017 31 Dec 2016 Revenue Management fees 493.9 477.7 1,465.1 867.8 Performance fees 33.5 (2.1) 103.9 54.8 Shareowner servicing fees 31.4 30.2 71.5 – Other revenue 33.2 31.6 103.2 77.3 Total revenue 592.0
Slide 28: Pro forma US GAAP income statement
US$m, except per share data 3 months ended Year ended 31 Dec 2017 30 Sep 2017 31 Dec 2017 31 Dec 2016 Revenue Management fees 493.9 477.7 1,853.5 1,746.0 Performance fees 33.5 (2.1) 84.7 18.2 Shareowner servicing fees 31.4 30.2 119.7 113.4 Other revenue 33.2 31.6 124.7 133.0 Total revenue 592.0 537.
Slide 29: Reconciliation of adjusted financial measures
3 months ended Year ended US$m, except per share data 31 Dec 2017 30 Sep 2017 31 Dec 2017 31 Dec 2016 Reconciliation of revenue to adjusted revenue Revenue 592.0 537.4 2,182.6 2,010.6 Distribution expenses¹ (86.7) (82.8) (334.5) (342.1) Adjusted revenue 505.3 454.6 1,848.1 1,668.5 Reconciliation of
Slide 30: Reconciliation of adjusted financial measures (cont'd)
3 months ended Year ended US$m, except per share data 31 Dec 2017 30 Sep 2017 31 Dec 2017 31 Dec 2016 Reconciliation of net income to adjusted net income, attributable to JHG Net income attributable to JHG 471.7 99.5 704.6 336.2 Employee compensation and benefits² 9.6 15.3 54.1 13.5 Long-term incent
Slide 31: Footnotes to reconciliation of adjusted financial measures
Alternative performance measures (cont’d) Footnotes to reconciliation of adjusted financial measures 1 Distribution expenses are paid to financial intermediaries for the distribution of JHG’s investment products. JHG management believes that the deduction of third-party distribution, service and adv
Slide 32: Diversity of performance fees 4Q17
4Q17 (US$m) 3Q17 (US$m) 4Q16 (US$m) AUM generating 4Q17 pfees (US$bn) # of funds generating 4Q17 pfees Frequency Timing SICAVs 9.3 1.8 (0.1) 6.0 2 23 annually; 2 quarterly 23 at June; 2 on quarters Offshore Absolute Return 3.0 1.2 9.8 1.3 14 Quarterly / Annually Various Segregated Mandates¹ 15.2 0.4
Slide 33: US mutual funds with performance fees
US mutual funds with performance fees 1 The funds listed have a performance-based investment advisory fee that adjusts up or down based on performance relative to a benchmark over 36-month rolling periods. Please see the funds’ Statements of Additional Information for more details and benchmark info
Slide 34: Adjusted operating expenses – FY17 versus FY16
Adjusted operating expenses – FY17 versus FY16 (US$m) Operating expenses – FY17 vs FY16 US$m FY17 pro forma US GAAP Adjustments FY17 pro forma adjusted FY16 pro forma adjusted Change FY17 pro forma adjusted vs FY16 pro forma adjusted Employee compensation and benefits 698.3 (54.1) 644.2 611.2 5% Lon
Slide 35: Contacts
Contacts Investor enquiries John Groneman Head of Investor Relations +44 (0) 20 7818 2106 john.groneman@janushenderson.com Louise Curran Non-US Investor Relations +44 (0) 20 7818 5927 louise.curran@janushenderson.com Jim Kurtz US Investor Relations +1 (303) 336 4529 jim.kurtz@janushenderson.com Inve
Slide 36: Forward looking information
Janus Henderson Investors 201 Bishopsgate, London EC2M 3AE Tel: 020 7818 1818 Fax: 020 7818 1819 Past performance is no guarantee of future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Forward looking information This presentation includes stat
Slide 37: Forward looking information
Janus Henderson Investors 201 Bishopsgate, London EC2M 3AE Tol: 020 7818 1818 Fax: 020 7818 1819 Past performances no guarantee of future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Forward looking information ‘This presentation includes state