Slide 1: First Quarter 2023 Results
First Quarter 2023 Results Marty Flanagan President and Chief Executive Officer Andrew Schlossberg SMD & Head of the Americas Allison Dukes Chief Financial Officer April 25, 2023
Slide 2: Forward-looking statements and Important Information
Forward-looking statements and Important Information This presentation, and comments made in the associated This presentation includes the following non-GAAP performance conference call today, may include “forward-looking statements.” measures: net revenue (and by calculation, net revenue yield on F
Slide 3: First quarter 2023 highlights
First quarter 2023 highlights Q1’21 Q4’21 Q1’22 Key Capability Q1’23 Ending Key Metrics Q1’22 Q4’22 Q1’23 Q1’23 Business Highlights Area AUM ETFs, Factors $510B1 ETF net long-term inflows of $2.8B. Growth was broad Net LT Flows (billions) $17.2 ($3.2) $2.9 and Index based across equity and fixed inc
Slide 4: Investment performance as of March 31, 2023
Investment performance as of March 31, 2023 % of actively managed assets in top half of peer group or beating benchmark Overall US Equity Global & Int’l Equity Fixed Income Alternatives Balanced 100 80 60 98% 94% 90% 85% 82% 85% 85% 40 78% 74% 69% 64% 64% 64% 64% 64% 54% 54% 20 39% 37% 31% 34% 33% 3
Slide 5: Assets under management & long-term flows
Assets under management & long-term flows 1 Q1'22 Q4'22 Q1'23 % of Total Firm AUM Annualized LT Org. Grow th (in billions) AUM Total Firm AUM by Investment Approach AUM by Channel 67% 69% 68% 33% 31% 32% 67% 62% 62% 33% 38% 38% $1,556 $1,043 $1,045 $1,409 $1,483 $976 $1,005 $925 $872 $513 $511 $537
Slide 6: Assets under management & long-term flows (continued)
Assets under management & long-term flows (continued) 1 Q1'22 Q4'22 Q1'23 % of Total Firm AUM Annualized LT Org. Grow th (in billions) AUM by Geography AUM by Asset Class 70% 71% 71% 15% 16% 15% 14% 13% 13% 14% 13% 13% 5% 5% 5% 50% 45% 47% 21% 22% 22% 10% 14% 14% $1,092 $1,056 $780 $999 $696 $637 $3
Slide 7: Global institutional long-term flows & pipeline
Global institutional long-term flows & pipeline (in billions) Global Institutional LT Flows Won Not Funded Pipeline by Type of Mandate (% AUM) 100% = $22.1 billion $25.2 $24.6 27% $21.4 $20.8 $19.0 3% $6.8 $6.6 $3.9 $1.5 $0.9 24% ($18.4) ($17.5) ($17.5) ($18.0) ($19.9) 30% Q1’22 Q2’22 Q3’22 Q4’22 Q1
Slide 8: Revenues and expenses
Revenues and expenses (in millions) Net Revenues Adjusted Operating Expenses -14.1% -1.2% Q1’22 vs Q1’23 $177 million decrease $9 million decrease $1,252 -$175 $1,076 -$45 -$4 +$66 $758 $749 -$20 -$9 +$4 -$6 +$2 Q1’22 Investment Service & Performance Other Third- Q1’23 Q1’22 Employee Marketing Prope
Slide 9: Adjusted operating income and profitability
Adjusted operating income and profitability (in millions, except margin and per share information) Adjusted Operating Income and Adjusted Operating Adjusted Net Income and Adjusted Diluted Earnings Margin Per Share 41.5% 42.1% 42.0% $0.86 40.2% $0.78 $0.77 39.5% $0.68 $0.56 35.1% $0.39 $0.39 $0.38 3
Slide 10: Capital management
Capital management (in millions, except ratio information) Capital Returned to Shareholders Leverage Ratio** $337 $200 3.19x 3.41x $145 $145 $145 $145 2.55x 2.58x 2.76x $59 $59 $59 $59 $59 0.82x 0.69x 0.67x 0.78x 0.83x $78 $86 $86 $86 $86 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 C
Slide 11: Conclusion
Conclusion • Return to organic growth led by consistent inflows in key capabilities, moderating redemptions in active equity o Institutional channel achieved 7% annualized organic growth in first quarter, 14th consecutive quarter of net inflows o Fixed income capabilities generated net long-term inf
Slide 12: Appendix
Appendix 4 Invesco 12
Slide 13: We are diversified as a firm
We are diversified as a firm By Client Domicile By Channel By Asset Class 5% 13% 13% 47% 71% 62% 38% 14% 15% 22% 1-Yr 1-Yr 1-Yr (billions) Change (billions) Change (billions) Change Americas $1,055.7 (3.3)% Retail $924.9 (11.5)% Equity $695.7 (10.8)% Asia Pac $228.6 (4.7)% Institutional $558.1 9.2 %
Slide 14: Investment performance by investment objective
Investment performance By investment objective (actively managed assets)* AUM above benchmark 1st quartile 2nd quartile Equities U.S. Core U.S. Growth U.S. Value Sector 100% 100% 100% 100% 46% 79% 78% 61% 61% 33% 54% 41% 8% 55% 56% 52% 45% 18% 45% 18% 16% 41% 34% 27% 31% 4% 27% 1% 7% 25% 25% 25% 11%
Slide 15: Investment performance by investment objective
Investment performance By investment objective (actively managed assets)* AUM above benchmark 1st quartile 2nd quartile Equities Other Global Global ex-U.S. and Em. Mkts. Alternatives Balanced 100% 100% 100% 100% 10% 24% 44% 56% 35% 45% 84% 90% 89% 97% 99% 9% 89% 56% 11% 69% 18% 75% 34% 68% 60% 64%
Slide 16: US GAAP and Non-GAAP operating results Q1-23 vs. Q4-22
US GAAP and Non-GAAP operating results Q1-23 vs. Q4-22 US GAAP Basis Non-GAAP Basis (in millions) Q1-23 Q4-22 % Change (1) (in millions) Q1-23 Q4-22 % Change (1) Investment management fees $1,027.9 $1,007.1 2.1% Investment management fees $1,182.4 $1,157.5 2.2% Service and distribution fees 334.2 33
Slide 17: Reconciliation of US GAAP to Non-GAAP, three months ended March 31, 2023
Reconciliation of US GAAP results to Non-GAAP results Three months ended March 31, 2023 Please refer to pages 7-10 in the 1Q 2023 earnings press release for a description of the adjustments Consolidation 3rd party distribution, Transaction, Market appreciation / Consolidated of joint service and adv
Slide 18: Reconciliation of US GAAP to Non-GAAP, three months ended December 31, 2022
Reconciliation of US GAAP results to Non-GAAP results Three months ended December 31, 2022 Please refer to pages 9-12 in the 4Q 2022 earnings press release for a description of the adjustments Consolidation 3rd party distribution, Transaction, Market appreciation / Consolidated of joint service and
Slide 19: Reconciliation of US GAAP results to Non-GAAP results
Reconciliation of US GAAP results to Non-GAAP results (in millions) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Operating revenues $1,659.7 $1,721.4 $1,750.0 $1,763.4 $1,629.4 $1,530.4 $1,445.7 $1,443.4 $1,418.2 Non-GAAP adjustments (408.7) (418.5) (416.5) (389.7) (377.0) (356.5) (335.1) (
Slide 20: Footnote disclosures
Footnote disclosures Footnotes for Slide 3, First quarter 2023 highlights Non-GAAP financial measures - For the reconciliations from US GAAP to non-GAAP measures, see the Appendix to this presentation and the non-GAAP Information and Reconciliations section of the current earnings release. Additiona
Slide 21: Footnote disclosures (continued)
Footnote disclosures (continued) Footnotes for Slide 10, Capital management Non-GAAP financial measures – For the reconciliations from US GAAP to non-GAAP measures, see the Appendix to this presentation and the non-GAAP Information and Reconciliations section of the current earnings release. Additio