Slide 1: Delivering: 2015 Full Year Results
DELIVERING 2015 Full Year Results JUPITER FUND MANAGEMENT PLC
Slide 2: Highlights
2015 FULL YEAR RESULTS 1 Highlights Executing our strategy ■ Improved investment performance ■ Continued organic flow growth from core mutual fund franchise ■ £2.1bn of net mutual fund flows ■ AUM increased 12% to £35.7bn ■ Diversifying by product, client type and geography ■ Profits up 11% and oper
Slide 3: Full year highlights
2015 FULL YEAR RESULTS 2 Full year highlights Healthy growth across key metrics Measure 2014 2015 Change Net revenues £303.0m £329.5m 9% EBITDA £155.6m £168.1m 8% EBITDA margin 51% 51% Underlying EPS 26.4p 29.2p 11% Ordinary dividend 13.2p 14.6p 11% Total dividend 24.7p 25.5p Like-for-like total div
Slide 4: Revenues
2015 FULL YEAR RESULTS 3 Revenues Organic growth (excluding private clients and performance fees) of 8% Net revenue Net revenue (£ million) £ million 2014 2015 % +/- Net mgt fees Net initial charges Performance fees Net management fees 285.0 300.8 +6% 329 15 Net initial charges 13.1 14.1 303 14 289
Slide 5: Net management fee margins
2015 FULL YEAR RESULTS 4 Net management fee margins Key drivers remain growth of fixed income and higher SICAV assets Business mix Net management fee margin 21% bps H1 13 H2 13 H1 14 H2 14 H1 15 H2 15 97.0 19% Margin* 92.3 88.9 87.2 88.4 88.1 87.0 ■ Progression distorted by 2014 events: ■ Loss of la
Slide 6: Fixed costs
2015 FULL YEAR RESULTS 5 Fixed costs Fixed costs Fixed costs (£ million) £ million 2014 2015 % +/- 51 47 48 Fixed staff costs 46.3 43.5 45 46 Other expenses 49.1 52.6 41 42 40 Fixed costs 95.4 96.1 1% ■ Savings from private client disposal being steadily reinvested ■ Office move cost hit in H2 sligh
Slide 7: Variable costs
2015 FULL YEAR RESULTS 6 Variable costs Variable costs Variable costs (£ million) and comp ratio* £ million 2014 2015 28 Cash bonus 36.2 45.5 25 21 Deferred bonus 8.9 10.1 LTIP, SAYE and SIP 8.0 10.8 17 17 Variable costs 53.1 66.4 10 Variable compensation ratio* 26% 28% 46 ■ Cash bonus up due to per
Slide 8: Earnings
2015 FULL YEAR RESULTS 7 Earnings Operating margins above 50% and attractive earnings growth Scalable platform Underlying earnings per share (pence) 11% p.a. 54 54 53 51 51 51 29.2 168 26.4 25.2 156 152 135 125 124 19.1 19.0 17.6 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 EBITDA (£
Slide 9: Dividends
2015 FULL YEAR RESULTS 8 Dividends 29% increase in like-for-like dividends Split of available profit* Dividend progression (pence per share) £16m Ordinary Special 7% £66m Return of private client proceeds 4.9 10.9p 28% 10.9 21% 6.6 15% 14.6 29% 12.6 13.2 £34m 7.8 8.8 14.6p 4.7 Staff incentives Corpo
Slide 10: Strategy
2015 FULL YEAR RESULTS 9 Strategy 1 2 3 Sell this expertise Deliver through products Deliver attractive outperformance suited to our returns to after fees to our distribution shareholders clients strengths JUPITER FUND MANAGEMENT PLC
Slide 11: Performance numbers
2015 FULL YEAR RESULTS 10 Performance numbers Generating value for our clients Three year mutual fund performance Commentary Long-term track record maintained 68% of AUM above median over three years 16% Excellent segregated mandate and investment trust performance 11% 30% 16% 47% 30% 29% 21%
Slide 12: Performance numbers on key funds
2015 FULL YEAR RESULTS 11 Performance numbers on key funds Three year investment performance in funds over £1bn AUM at AUM at AUM at 4th 3rd 2nd 1st Dec 14 Jun 15 Dec 15 quartile quartile quartile quartile Merlin Income £4,432m £4,184m £3,904m Dynamic Bond* £2,130m £3,189m £3,748m European £2,591m £
Slide 13: Turning performance into flows
2015 FULL YEAR RESULTS 12 Turning performance into flows 2015 net flows and AUM Movement in AUM (£ billion) AUM up 12% to £35.7bn, driven by healthy underlying 36 organic flow growth 35.7 35 1.8 Value of active investing 34 shown by market contribution (0.1) coming almost entirely from 33 2.1 ‘a
Slide 14: Mutual fund focus
2015 FULL YEAR RESULTS 13 Mutual fund focus Consistent organic flow growth Cumulative net mutual fund flows (£bn) Focused mutual fund provider, writing consistent 11.0 net inflows across the cycle 10.0 £10.4bn cumulative mutual 9.0 fund inflows over past seven years 8.0 7.0 10% p.a. organic fl
Slide 15: Turning performance into flows
2015 FULL YEAR RESULTS 14 Turning performance into flows Diversification and growth from International Gross mutual fund flows SICAV AUM AUM by client geography Unit trusts SICAV Equities Fixed Income UK Europe Asia RoW 6.9 9.3 8.0 6.2 4.3 5.2 4.7 3.0 1.9 1.1 2011 2012 2013 2014 2015 2011 2012 2013
Slide 16: Diversification by product
2015 FULL YEAR RESULTS 15 Diversification by product Split of AUM by asset class Evolution and diversification are constant themes as we continually adapt to investor needs Multi-asset UK equities European equities UK equities used to dominate AUM Fixed Income Other Rise of Merlin and, more re
Slide 17: 'Four for the future'
2015 FULL YEAR RESULTS 16 ‘Four for the future’ A sample of funds within the ‘grey zone’ Distribution unit trust (AUM in £m) Absolute Return unit trust (performance) 14.0% 600 400 9.0% 200 4.0% 0 -1.0% Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Sep 13 Sep 14 Sep 15 European Opportunities SICAV (AUM i
Slide 18: Delivering value to shareholders
2015 FULL YEAR RESULTS 17 Delivering value to shareholders Benefits of focus and discipline Scalable operating platform 2015 was an excellent year for Jupiter More resilient position than ever before Net management fees (£m) Fixed costs (£m) Investing in selective opportunities EBITDA* margin
Slide 19: Delivering against our key goals
2015 FULL YEAR RESULTS 18 Delivering against our key goals 1 Good progress on implementing our strategy 2 Delivering outperformance after fees 3 Diversifying product and distribution capabilities 4 Increasing cash returns to shareholders 5 Attractive growth prospects JUPITER FUND MANAGEMENT PLC
Slide 20: Q&A
2015 FULL YEAR RESULTS 19 Q&A JUPITER FUND MANAGEMENT PLC
Slide 21: Forward-looking statements
Forward-looking statements This presentation may contain certain “forward-looking the impact of changes in capital, solvency or accounting statements” with respect to certain plans of Jupiter Fund standards, and tax and other legislation and regulations in Management plc (Jupiter) and its current go