Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Q1 FY2010 Earnings Presentation
22 slides from Franklin Resources's earnings presentation, Jan 28, 2010
Slide 1: Franklin Resources, Inc. First Quarter Results
Internal Use Only / Not for Distribution to the Public Franklin Resources, Inc. First Quarter Results January 28, 2010 EXHIBIT 99.2
Slide 2: Highlights of the Fiscal First Quarter 2010
4 Highlights of the Fiscal First Quarter 2010 Relative investment performance remained strong Long-term net new flows exceeded $15 billion Operating income increased 21% to $467 million Paid a $3.00 per share special cash dividend and increased the regular cash dividend by 5%
Slide 3: Assets Under Management
ASSETS UNDER MANAGEMENT
Slide 4: Assets Under Management
6 Assets Under Management End of Period Simple Monthly Average $553.5 $451.2 $391.1 $416.2 $523.4 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 31-Dec-09 $534.9 $488.3 $438.7 $396.6 $428.0 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 31-Dec-09 (in billions, for the three months ended)
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Slide 6: Flow Summary
FLOW SUMMARY
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Slide 8: United States and International Flows
10 United States and International Flows United States (in billions, for the three months ended) International $23.8 ($15.1) $21.5 $13.5 $13.4 $18.1 ($24.8) ($13.4) ($16.1) ($12.7) 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 31-Dec-09 $18.4 ($13.1) $9.8 $6.4 $14.3 $13.4 ($9.7) ($8.7) ($9.9) ($20.3) 31-D
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Slide 10: Investment Performance
INVESTMENT PERFORMANCE
Slide 11: Long-Term Investment Performance
13 % of U.S. Long-Term Assets in Top Two Lipper Quartiles Investment Performance 91% 68% 85% 85% 85% 90% 85% 85% 1 - Year 3 - Year 5 - Year 10 - Year 85% 87% 80% 93% 83% 86% 90% 86% 1 - Year 3 - Year 5 - Year 10 - Year 12/31/2009 9/30/2009 Franklin Templeton Franklin Templeton Fixed-Income Franklin
Slide 12: Investment Performance – Detail View
14 100% 41% 99% 99% 88% 98% 99% 99% 1 - Year 3 - Year 5 - Year 10 - Year 91% 84% 83% 78% 85% 87% 78% 76% 1 - Year 3 - Year 5 - Year 10 - Year Investment Performance – Detail View Lipper rankings for Franklin Templeton U.S.-registered long-term mutual funds are based on Class A shares. Franklin Templ
Slide 13: Operating Results
OPERATING RESULTS
Slide 14: Quarterly Financial Highlights
16 $355.6 $120.9 $367.4 $110.8 $297.7 Unaudited Quarterly Financial Highlights Operating and Net Income Diluted Earnings Per Share $467.0 $384.7 $268.4 $223.3 $326.2 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 31-Dec-09 $1.54 $1.59 $0.52 $0.47 $1.28 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 31-Dec-09 (in
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Slide 18: Operating Revenues
17 31-Dec-09 30-Sep-09 Dec-09 vs. Sep-09 30-Jun-09 31-Mar-09 31-Dec-08 Dec-09 vs. Dec-08 11% 34% 13% 60% 3% 5% (75%) (79%) 10% NM 1,377.4 $ 1,238.9 $ 11% 1,073.6 $ 912.3 $ 969.3 $ 42% Unaudited Total Operating Revenues Operating Revenues 806.7 $ 725.0 $ 625.0 $ 552.9 $ 600.3 $ 488.1 433.4 365.2 304.
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Slide 21: Operating Results
19 Unaudited 31-Dec-09 30-Sep-09 Dec-09 vs. Sep-09 30-Jun-09 31-Mar-09 31-Dec-08 Dec-09 vs. Dec-08 Operating Income 467.0 $ 384.7 $ 21% 326.2 $ 223.3 $ 268.4 $ 74% (65%) NM (62%) NM 300% (38%) Other income (expenses), net 47.3 129.9 (64%) 96.9 (47.1) (93.7) NM Income Before Taxes 514.3 514.6 0% 423.
Slide 22: Operating Margin and Capital Management
20 67% 55% 54% 42% 45% Unaudited 16% 20% 23% 22% 78% 75% 77% 64% 123% 83% 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 31-Dec-09 Operating Margin Operating Margin and Capital Management 27.7% 24.5% 30.4% 31.1% 33.9% 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 31-Dec-09 Stock Repurchase Activity Dividend and