Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Q4 2011 Earnings Presentation
19 slides from Franklin Resources's earnings presentation, Oct 27, 2011
Slide 1: Preliminary Fourth Quarter Results – October 27, 2011
FRANKLIN RESOURCES, INC. Franklin Resources, Inc. Preliminary Fourth Quarter Results – October 27, 2011
Slide 2: Forward-Looking Statements
FRANKLIN RESOURCES, INC. Forward-Looking Statements The financial results in this presentation are preliminary. 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
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 and Fiscal Year
FRANKLIN RESOURCES, INC. Highlights of the Quarter and Fiscal Year • Our long-term investment track records are very strong across a wide range of products, despite some disappointing short-term performance in certain areas. • 4Q net new flows of $3.1 billion capped another solid year of pre-market
Slide 5: Investment Performance
FRANKLIN RESOURCES, INC. Investment Performance
Slide 6: 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 September 30, 2011 72% Franklin 90% 85% 86% Equity 84% 83% 84% 83% 85% 76% 89% Templeton 98% 62% Equity 22%
Slide 7: Assets Under Management and Flows
FRANKLIN RESOURCES, INC. Assets Under Management and Flows
Slide 8: 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 $714.4 $670.7 $687.2 $644.9 $659.9 $655.6 $604.7 30-Sep-10 31-Dec-10 31-Mar-11 30-Jun-11 30-Sep-11 30-Sep-10 31-Dec-10 31-Mar-11 30-Jun-11 30-Sep-11 8
Slide 9: 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 September 30, 2011) (chart is as of September 30, 2011) Cash Management Canada 1% 5% 2 Asia-Pacific Equity 12% Fixed- 39% United Income States 45% 67% 1 Europe 16% Hybrid 15% (in billions) 30-Sep
Slide 10: 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 $55.6 $57.4 $54.9 $52.9 $48.9 $55.7 $19.1 $21.4 $24.1 $15.4 $23.4 $9.0 $9.6 $2.5 $3.4 ($31.7) (40.8) ($35.9) ($46.4) ($87.6) ($49.7) ($52.8)
Slide 11: 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 $27.4 $25.5 $25.8 $23.1 (19.7) ($16.3) ($15.4) ($16.5) ($19.4) ($22.4) ($21.1) ($24.0) ($23.3) ($26.4) ($31.7) 30-Sep-10 31-Dec-10
Slide 12: Net New Flows by Investment Objective
FRANKLIN RESOURCES, INC. Net New Flows by Investment Objective (in billions, for the three months ended) Sep-11 vs. Sep-11 vs. 30-Sep-11 30-Jun-11 30-Sep-10 Jun-11 Sep-10 Equity sales $ 15.2 $ 16.7 (9%) $ 19.6 (22%) Equity redemptions (21.3) (16.7) 28% (14.7) 45% Equity net exchanges (0.8) (0.3) 167
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 $688 $659 $2.23 $2.25 $2.26 $629 $1.88 $509 $1.65 $501 $503 $503 $416 $373 30-Sep-10 31-Dec-10 31-Mar-11 30-Ju
Slide 15: Operating Revenues
Unaudited FRANKLIN RESOURCES, INC. Operating Revenues (in millions, for the three months ended) Sep-11 vs. Sep-11 vs. 30-Sep-11 30-Jun-11 31-Mar-11 31-Dec-10 30-Sep-10 Jun-11 Sep-10 Investment management fees $ 1,169.3 $ 1,142.8 2% $ 1,076.7 $ 1,040.9 $ 919.4 27% Sales and distribution fees 579.9 62
Slide 16: Operating Expenses
Unaudited FRANKLIN RESOURCES, INC. Operating Expenses (in millions, for the three months ended) Sep-11 vs. Sep-11 vs. 30-Sep-11 30-Jun-11 31-Mar-11 31-Dec-10 30-Sep-10 Jun-11 Sep-10 Sales, distribution and marketing $ 669.4 $ 719.3 (7%) $ 677.0 $ 647.1 $ 599.0 12% Compensation and benefits 309.4 313
Slide 17: Other Income and Associated Balance Sheet Components
Unaudited FRANKLIN RESOURCES, INC. Other Income (in millions, for the three months ended September 30, 2011) 13.0 (60.3) 1.9 (68.4) (127.6) (50.5) (59.2) (8.0) (11.1) (39.9) 27.3 Dividend, interest Equity metho d A vailable-fo r-sale Co nso lidated Trading Interest expense Co nso lidated Other To ta
Slide 18: Operating Results
Unaudited FRANKLIN RESOURCES, INC. Operating Results (in millions, except per share data, for the three months ended) Sep-11 vs. Sep-11 vs. 30-Sep-11 30-Jun-11 31-Mar-11 31-Dec-10 30-Sep-10 Jun-11 Sep-10 Income Before Taxes 560.8 687.1 (18%) 678.6 697.6 552.4 2% Taxes on income 203.9 208.9 (2%) 183.
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% 224.0 223.3 36.8% 37.5% 221.8 220.4 36.0% 217.7 33.3% 3.1 1.7 1.7 1.8 1.6 30-Sep-10 31-Dec-10