Slide 1: Franklin Resources, Inc. Third Quarter Results – August 2, 2011
FRANKLIN RESOURCES, INC. Franklin Resources, Inc. Third Quarter Results – August 2, 2011
Slide 2: Forward-Looking Statements
FRANKLIN RESOURCES, INC. Forward-Looking Statements Statements in this presentation regarding Franklin Resources, Inc. (“Franklin”) and its subsidiaries, which are not historical facts, are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Slide 3: Audio Commentary and Conference Call Details
FRANKLIN RESOURCES, INC. Audio Commentary and Conference Call Details Pre-recorded audio commentary on the results from Franklin Resources, Inc.’s President and Chief Executive Officer Greg Johnson and Executive Vice President and Chief Financial Officer Ken Lewis will be available today at approxim
Slide 4: Highlights of the Quarter
FRANKLIN RESOURCES, INC. Highlights of the Quarter • Investment performance remains strong • Record net new flows of $21.7 billion • Announced the acquisition of Balanced Equity Management, an Australian equity manager, that was completed in early July 4
Slide 5: Assets Under Management and Flows
FRANKLIN RESOURCES, INC. Assets Under Management and Flows
Slide 6: Assets Under Management
FRANKLIN RESOURCES, INC. Assets Under Management (in billions, for the three months ended) End of Period Simple Monthly Average $734.2 $726.7 $703.5 $670.7 $687.2 $644.9 $655.6 $604.7 $570.5 $583.1 30-Jun-10 30-Sep-10 31-Dec-10 31-Mar-11 30-Jun-11 30-Jun-10 30-Sep-10 31-Dec-10 31-Mar-11 30-Jun-11 6
Slide 7: Assets Under Management by Investment Objective and Sales Region
FRANKLIN RESOURCES, INC. Assets Under Management By Investment Objective By Sales Region (chart is as of June 30, 2011) (chart is as of June 30, 2011) Cash Management Canada 1% 5% 2 Fixed- Equity Asia-Pacific Income 42% 11% United 41% States 68% 1 Europe 16% Hybrid 16% (in billions) 30-Jun-11 31-Mar
Slide 8: Market Appreciation and Flows Summary
FRANKLIN RESOURCES, INC. Market Appreciation and Flows Summary (in billions, for the three months ended) Appreciation (Depreciation) and Other Long-Term Flows1 $55.7 $55.6 $57.4 $54.9 $51.0 $48.9 $24.1 $23.4 $21.4 $18.2 $19.1 $15.4 $9.6 $9.0 $3.4 (40.8) ($34.5) ($33.6) ($31.7) ($35.9) ($46.4) ($52.8
Slide 9: United States and International Flows
FRANKLIN RESOURCES, INC. United States and International Flows (in billions, for the three months ended) United States1 International $28.5 $29.7 $27.0 $27.7 $27.9 $27.1 $25.0 $26.0 $25.8 $23.1 (19.7) ($16.3) ($15.3) ($15.4) ($16.5) ($18.3) ($19.4) ($22.4) ($21.1) ($24.0) ($31.7) 30-Jun-10 30-Sep-10
Slide 10: Net New Flows by Investment Objective
FRANKLIN RESOURCES, INC. Net New Flows by Investment Objective (in billions, for the three months ended) Jun-11 vs. Jun-11 vs. 30-Jun-11 31-Mar-11 30-Jun-10 Mar-11 Jun-10 Equity sales $ 16.7 $ 21.1 (21%) $ 16.0 4% Equity redemptions (16.7) (23.7) (30%) (15.6) 7% Equity net exchanges (0.3) 0.3 NM (0.
Slide 11: Investment Performance
FRANKLIN RESOURCES, INC. Investment Performance
Slide 12: Investment Performance – Lipper Rankings of U.S.-Registered Long-Term Mutual Funds
FRANKLIN RESOURCES, INC. Investment Performance – Lipper Rankings of U.S.-Registered Long-Term Mutual Funds1 Percentage of Assets in the Top Two Quartiles Franklin Templeton By Category as of June 30, 2011 76% Franklin 90% 89% 87% Equity 86% 83% 82% 84% 83% 72% 94% Templeton 95% Equity 69% 58% 92% 5
Slide 13: Operating Results
FRANKLIN RESOURCES, INC. Operating Results
Slide 14: Quarterly Financial Highlights
Unaudited FRANKLIN RESOURCES, INC. Quarterly Financial Highlights (in millions, except per share data, for the three months ended) Operating and Net Income1 Diluted Earnings Per Share2 $683 $659 $2.23 $2.25 $2.26 $629 $522 $509 $1.65 $1.58 $501 $503 $503 $360 $373 30-Jun-10 30-Sep-10 31-Dec-10 31-Ma
Slide 15: Operating Revenues
Unaudited FRANKLIN RESOURCES, INC. Operating Revenues (in millions, for the three months ended) Jun-11 vs. Jun-11 vs. 30-Jun-11 31-Mar-11 31-Dec-10 30-Sep-10 30-Jun-10 Mar-11 Jun-10 Investment management fees $ 1,142.8 $ 1,076.7 6% $ 1,040.9 $ 919.4 $ 915.9 25% Sales and distribution fees 620.3 587.
Slide 16: Operating Expenses
Unaudited FRANKLIN RESOURCES, INC. Operating Expenses (in millions, for the three months ended) Jun-11 vs. Jun-11 vs. 30-Jun-11 31-Mar-11 31-Dec-10 30-Sep-10 30-Jun-10 Mar-11 Jun-10 Sales, distribution and marketing $ 719.3 $ 677.0 6% $ 647.1 $ 599.0 $ 590.9 22% Compensation and benefits 313.6 315.8
Slide 17: Other Income and Associated Balance Sheet Components
Unaudited FRANKLIN RESOURCES, INC. Other Income (in millions, for the three months ended June 30, 2011) 2.0 5.4 (10.1) 9.8 (25.2) 15.8 10.6 (3.9) 4.4 Dividend, interest Equity m ethod Available-for-sale Consolidated Trading Interest Expense Consolidated Other Total and capital gain investm ents inve
Slide 18: Operating Results
Unaudited FRANKLIN RESOURCES, INC. Operating Results (in millions, except per share data, for the three months ended) Jun-11 vs. Jun-11 vs. 30-Jun-11 31-Mar-11 31-Dec-10 30-Sep-10 30-Jun-10 Mar-11 Jun-10 Income Before Taxes 687.1 678.6 1% 697.6 552.4 494.8 39% Taxes on income 208.9 183.0 14% 207.5 1
Slide 19: Operating Margin and Capital Management
Unaudited FRANKLIN RESOURCES, INC. Operating Margin and Capital Management (in millions, except as noted, as of and for the period ended) Quarterly Operating Margin Quarterly Stock Repurchase Activity 38.8% 36.0% 36.8% 34.0% 33.3% 225.4 224.0 223.3 221.8 220.4 2.1 1.7 1.7 1.8 1.6 30-Jun-10 30-Sep-10