Janus Henderson Group Plc · NYSE:JHG

Janus Henderson — Q3 2023 Earnings Presentation

34 slides from Janus Henderson's earnings presentation, Nov 1, 2023

  1. Slide 1: Third Quarter 2023 Results

    THIRD QUARTER 2023 RESULTS Wednesday, November 1, 2023 Ali Dibadj Chief Executive Officer Roger Thompson Chief Financial Officer

  2. Slide 2: Key metrics – Q3 2023 vs Q2 2023

    Q3 2023 RESULTS Key metrics – Q3 2023 vs Q2 2023  Investment performance remains Q3 2023 Q2 2023 solid Investment outperformance1 3-/5-/10-year 58/67/72% 68/66/71%  AUM decreased 4% to $308.3 billion Total AUM $308.3bn $322.1bn Net flows $(2.6)bn $(0.5)bn  Net flows of $(2.6) billion compared to

  3. Slide 3: Q3 2023 Update

    Q3 2023 UPDATE We continue to make meaningful progress across multiple areas of the business  Executing on the 3 pillars of our strategic vision: Protect & Grow, Strategy Amplify, and Diversify  Enhancing our culture with our Mission, Values, and Purpose  Expect to achieve cost efficiencies of $5

  4. Slide 4: Investment performance remains solid

    INVESTMENT PERFORMANCE Investment performance remains solid % of AUM outperforming benchmark % of mutual fund AUM in top 2 Morningstar quartiles As of September 30, 2023 As of September 30, 2023 Capability 1-year 3-year 5-year 10-year Capability 1-year 3-year 5-year 10-year Equities 83% 46% 56% 60%

  5. Slide 5: Quarterly flows

    QUARTERLY FLOWS1 Flows are positive year to date and significantly improved compared to the prior year Total flows ($ in billions) 19.2 17.7 19.5 15.9 16.4 14.8 15.2 11.4 11.8 5.5 (0.8) (1.0) (0.5) (2.6) (6.2) (7.8) (5.8) (11.0) (14.0) (14.4) (16.7) (17.2) (15.7) (20.2) (23.9) (24.2) (25.8) Q3 2021

  6. Slide 6: Flows by client type

    FLOWS BY CLIENT TYPE We are gaining market share in U.S. Intermediary, and as previously communicated, the Institutional pipeline will take time to mature Intermediary Institutional Self-Directed ($ in billions) ($ in billions) ($ in billions) 9.9 9.1 9.2 8.1 8.3 8.9 6.3 6.9 5.8 3.0 2.6 1.9 0.3 0.2

  7. Slide 7: Flows by capability

    FLOWS BY CAPABILITY We are gaining market share in U.S. Equities and Fixed Income, despite a challenging market environment Q3 2023 flows by capability ($ in billions) Sales Redemptions Net sales / (redemptions) 5.7 4.8 0.9 1.0 0.3 (0.7) (0.5) (2.3) (3.9) (1.7) (0.8) (8.0) Equities Fixed Income Mult

  8. Slide 8: U.S. GAAP Financial Results

    U.S. GAAP FINANCIAL RESULTS Change Change Q3 2023 vs Q3 2023 vs ($ in millions, except per share data) Q3 2023 Q2 2023 Q2 2023 Q3 2022 Q3 2022 Revenue Management fees 434.9 423.5 3% 426.2 2% Performance fees (15.8) (5.9) nm (13.2) (20%) Shareowner servicing fees 54.9 53.3 3% 54.0 2% Other revenue 47

  9. Slide 9: Adjusted Financial Results

    ADJUSTED FINANCIAL RESULTS Change Change Q3 2023 vs Q3 2023 vs ($ in millions, except as noted) Q3 2023 Q2 2023 Q2 2023 Q3 2022 Q3 2022 Revenue Management fees 393.5 381.7 3% 380.2 3% Performance fees (15.8) (5.9) nm (13.2) (20%) Shareowner servicing fees 11.0 10.0 10% 10.3 7% Other revenue 16.3 16.

  10. Slide 10: Q3 2023 Adjusted Financial Highlights

    Q3 2023 ADJUSTED FINANCIAL HIGHLIGHTS  Increase from Q2 2023 adjusted revenue driven by higher average AUM partially offset by lower performance fees Adjusted  Increase in net management fee margin primarily due to mix shift Revenue  Estimated aggregate performance fees for full-year 2023 is towa

  11. Slide 11: Capital Resources

    CAPITAL RESOURCES Strong liquidity position Balance sheet profile – carrying value June 30, 2023 vs. September 30, 2023  Cash and investment securities1 ($ in millions) totaled $1,475.2 million compared to outstanding debt of 1,475.2 $305.3 million 1,349.5 359.5  Increase in cash primarily due to

  12. Slide 12: Q&A

    Q&A GROUP PLC:

  13. Slide 13: Appendix

    APPENDIX GROUP PLC:

  14. Slide 14: Assets Under Management

    ASSETS UNDER MANAGEMENT AUM as of September 30, 2023: $308.3 billion By client type By capability By client location 3% 10% 23% 15% 31% 54% 21% 61% 59% 23% Intermediary $167.2bn Equities $187.9bn North America $181.5bn Institutional $71.6bn Fixed Income $65.1bn EMEA & LatAm $94.7bn Self-Directed $69

  15. Slide 15: Investment Management Capabilities

    INVESTMENT MANAGEMENT CAPABILITIES Diversified product range Alternatives Equities $9.4bn  Wide range of equity strategies encompassing different geographic Intermediary Multi-Asset $45.9bn focuses and investment styles Fixed Income Intermediary Intermediary  Innovative and differentiated techniqu

  16. Slide 16: Largest Strategies by Capability

    LARGEST STRATEGIES BY CAPABILITY AUM ($bn) Capability Strategy 30 Sep 23 US Mid Cap Growth 24.4 US Concentrated Growth 23.1 Equity US Research Growth Equity 18.5 Global Life Sciences 10.7 UK Enhanced Index 7.8 Australian Fixed Income 9.7 Global Strategic Fixed Income 6.6 Fixed Income Absolute Return

  17. Slide 17: Quarterly Flows by Capability: Equities and Fixed Income

    QUARTERLY FLOWS BY CAPABILITY Equities and Fixed Income Equities Fixed Income ($ in billions) ($ in billions) 10.7 8.6 7.7 7.3 4.8 5.6 5.7 5.1 3.3 4.4 4.8 3.6 - 1.0 0.9 (2.3) (1.2) (1.9) (4.1) (3.7) (4.1) (3.9) (5.6) (7.5) (7.4) (8.0) (8.9) (8.6) (9.6) (13.1) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023

  18. Slide 18: Quarterly Flows by Capability: Multi-Asset and Alternatives

    QUARTERLY FLOWS BY CAPABILITY Multi-Asset and Alternatives Multi-Asset Alternatives ($ in billions) ($ in billions) 1.5 1.1 1.0 1.1 1.0 0.7 0.4 0.5 0.4 0.3 (0.3) (0.6) (0.6) (0.8) (0.5) (0.2) (1.0) (0.8) (0.7) (0.7) (1.0) (1.0) (1.1) (1.2) (0.8) (1.7) (2.1) (1.8) (1.8) (1.7) Q3 2022 Q4 2022 Q1 2023

  19. Slide 19: Net Flows by Capability

    NET FLOWS BY CAPABILITY¹ Total net flows by capability Equities ($ in billions) Fixed Income Multi-Asset Alternatives 5.5 (0.5) (0.8) (1.0) (2.6) (6.2) (5.8) (7.8) (11.0) Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 1 Net flows across all time periods exclude Intech, the s

  20. Slide 20: Investment Performance

    INVESTMENT PERFORMANCE % of AUM outperforming benchmark Q4 2022 Q1 2023 Q2 2023 Q3 2023 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 58% 54% 57% 64% 71% 57% 52% 77% 61% 58% 53% 59% 83% 46% 56% 60% Fixed Income 18% 78% 89% 90% 27% 87% 89% 95% 50% 73% 85% 90%

  21. Slide 21: Investment Performance: Morningstar Quartiles

    INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles Q4 2022 Q1 2023 Q2 2023 Q3 2023 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 61% 54% 72% 89% 74% 55% 79% 91% 71% 57% 79% 88% 76% 69% 80% 88% Fixed Income 22% 36% 68% 65% 34% 51% 69%

  22. Slide 22: Investment Performance: Morningstar Quartiles (continued)

    INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Group 1st quartile 2nd quartile 88 90 87 87 81 79 76 78 75 70 70 31 28 35 33 60 61 61 60 31 25 26 33 32 46 35 44 35 35 37 34 15 59 55 59 50 50 50 53 45 47 31 34 26 25 26 25 25 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 20

  23. Slide 23: Investment Performance: Equities and Fixed Income

    INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Equities Fixed Income 1st quartile 2nd quartile 89 91 88 88 79 79 80 74 76 71 72 69 68 69 69 66 12 40 36 65 61 46 42 61 57 58 54 55 38 42 39 29 30 51 52 40 22 25 25 19 39 37 41 26 28 26 24 34 36 35 32 31 28 43 64

  24. Slide 24: Investment Performance: Multi-Asset and Alternatives

    INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Multi-Asset Alternatives 1st quartile 2nd quartile 100100100100 96 96 96 94 96 95 98 97 97 98 93 92 94 92 95 92 93 91 2 0 1 1 16 1 3 1 1 85 80 77 78 12 43 45 43 45 42 54 78 34 76 76 78 80 89 51 45 44 77 92 92 92 9

  25. Slide 25: U.S. GAAP: Statement of Income

    U.S. GAAP: STATEMENT OF INCOME Three months ended ($m, except per share data or as noted) 30 Sep 23 30 Jun 23 30 Sep 22 Revenue Management fees 434.9 423.5 426.2 Performance fees (15.8) (5.9) (13.2) Shareowner servicing fees 54.9 53.3 54.0 Other revenue 47.0 45.6 45.9 Total revenue 521.0 516.5 512.9

  26. Slide 26: Alternative Performance Measures

    ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures Three months ended ($m, except per share data) 30 Sep 23 30 Jun 23 30 Sep 22 Reconciliation of revenue to adjusted revenue Revenue 521.0 516.5 512.9 Management fees 1 (41.4) (41.8) (46.0) Shareowner servicing fees 1 (43.9

  27. Slide 27: Alternative Performance Measures (continued)

    ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures (continued) Three months ended ($m, except per share data) 30 Sep 23 30 Jun 23 30 Sep 22 Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG Net income attributable to JHG 93.5 89.8

  28. Slide 28: Footnotes to reconciliation of adjusted financial measures

    ALTERNATIVE PERFORMANCE MEASURES Footnotes to reconciliation of adjusted financial measures 1 JHG contracts with third-party intermediaries to distribute and service certain of its investment products. Fees for distribution and servicing related activities are either provided for separately in an in

  29. Slide 29: Capital Management

    CAPITAL MANAGEMENT Commitment to return of capital Q4 2021 to Q3 2023 quarterly capital return ($ in millions) Dividends Share repurchases 131.4 121.1 107.6 66.9 55.6 43.3 64.7 64.9 64.7 64.6 64.7 – 64.5 64.3 65.5 64.7 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Dividend paid / s

  30. Slide 30: Performance Fees

    PERFORMANCE FEES AUM generating # of funds Q3 2023 generating Q3 2023 Q2 2023 Q3 2022 pfees Q3 2023 ($m) ($m) ($m) ($bn) pfees Frequency Timing 17 annually; 17 at June; SICAVs 0.7 1.4 0.8 2.3 1 3 quarterly 3 on quarters UK OEICs and unit trusts – – – – – annually various quarterly / Absolute return

  31. Slide 31: U.S. Mutual Funds with Performance Fees

    U.S. MUTUAL FUNDS WITH PERFORMANCE FEES AUM Performance Q3 2023 P&L 30 Sep 23 Base Performance cap/(floor) vs impact Mutual funds with performance fees¹ ($m) Benchmark fee fee2 benchmark ($000s) Research Fund and Portfolio 17,730 Russell 1000® Growth Index 0.64% ± 15 bps ± 5.00% (6,859) ® Forty Fund

  32. Slide 32: Long-Term Incentive Compensation

    LONG-TERM INCENTIVE COMPENSATION Estimated future long-term incentive compensation amortization Amount remaining ($ in millions) to expense 2023 2024 2025 2026 2027 2020 annual grant 3 3 – – – – 2021 annual grant 21 18 3 – – – 2022 annual grant 89 62 24 3 – – 2023 annual grant 111 58 35 16 2 – Other

  33. Slide 33: Contacts

    CONTACTS Investor enquiries Media enquiries Jim Kurtz Nicole Mullin Head of Investor Relations Director of Media Relations +1 303 336 4529 +44 (0)20 7818 2511 jim.kurtz@janushenderson.com nicole.mullin@janushenderson.com Investor Relations investor.relations@janushenderson.com 33

  34. Slide 34: Contact us / Forward-looking information

    Contact us 201 Bishopsgate London EC2M 3AE United Kingdom www.janushenderson.com 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 statements concernin

Janus Henderson Group — Q3 2023 Earnings Presentation on 6ix