Janus Henderson Group Plc · NYSE:JHG

Janus Henderson — Q2 2023 Earnings Presentation

38 slides from Janus Henderson's earnings presentation, Aug 2, 2023

  1. Slide 1: Second Quarter 2023 Results

    SECOND QUARTER 2023 RESULTS Wednesday, August 2, 2023 Ali Dibadj Chief Executive Officer Roger Thompson Chief Financial Officer

  2. Slide 2: Key metrics – Q2 2023 vs Q1 2023

    Q2 2023 RESULTS Key metrics – Q2 2023 vs Q1 2023  Investment performance remains Q2 2023 Q1 2023 solid 3-year investment 68% 70% outperformance1  AUM increased 4% to $322.1 billion Net flows $(0.5)bn $5.5bn  Net flows of $(0.5) billion compared to $5.5 billion in Q1 2023 and Total AUM $322.1bn $3

  3. Slide 3: 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 June 30, 2023 As of June 30, 2023 Capability 1-year 3-year 5-year 10-year Capability 1-year 3-year 5-year 10-year Equities 61% 58% 53% 59% Equities 7

  4. Slide 4: Quarterly Flows

    QUARTERLY FLOWS1 We are pleased with the year-to-date flow improvement compared to the prior year, and the path to deliver consistent growth will not be linear Total flows ($ in billions) 18.2 15.9 19.2 17.7 16.4 19.5 14.8 15.2 11.4 5.5 (1.2) (0.8) (1.0) (0.5) (6.2) (7.8) (5.8) (11.0) (14.0) (16.7)

  5. Slide 5: Flows by Client Type

    FLOWS BY CLIENT TYPE Positive Institutional flows mostly offset retail results which were impacted by market uncertainty Intermediary Institutional Self-Directed ($ in billions) ($ in billions) ($ in billions) 9.5 9.9 9.1 9.2 8.1 8.3 6.5 6.3 5.8 6.9 3.0 1.9 0.4 0.3 0.2 0.4 0.3 (0.7) (2.6) (0.9) (0.7

  6. Slide 6: Flows by Capability

    FLOWS BY CAPABILITY Despite market uncertainty, Equities flows were breakeven and Fixed Income flows were positive Q2 2023 flows by capability ($ in billions) Sales Redemptions Net sales / (redemptions) 8.6 5.1 - 1.0 1.1 0.4 (0.7) (0.8) (4.1) (1.8) (1.2) (8.6) Equities Fixed Income Multi-Asset Alter

  7. Slide 7: U.S. GAAP Financial Results

    U.S. GAAP FINANCIAL RESULTS Change Change Q2 2023 vs Q2 2023 vs ($ in millions, except per share data) Q2 2023 Q1 2023 Q1 2023 Q2 2022 Q2 2022 Revenue Management fees 423.5 414.6 2% 453.6 (7%) Performance fees (5.9) (14.9) 60% (3.4) (74%) Shareowner servicing fees 53.3 51.5 3% 56.3 (5%) Other revenu

  8. Slide 8: Adjusted Financial Results

    ADJUSTED FINANCIAL RESULTS Change Change Q2 2023 vs Q2 2023 vs ($ in millions, except as noted) Q2 2023 Q1 2023 Q1 2023 Q2 2022 Q2 2022 Revenue Management fees 381.7 373.8 2% 402.7 (5%) Performance fees (5.9) (14.9) 60% (3.4) (74%) Shareowner servicing fees 10.0 9.2 9% 9.4 6% Other revenue 16.1 15.7

  9. Slide 9: Q2 2023 Adjusted Financial Highlights

    Q2 2023 ADJUSTED FINANCIAL HIGHLIGHTS  Increase from Q1 2023 adjusted revenue driven by higher average AUM and seasonal performance fees Adjusted  Decline in net management fee margin primarily due to mix shift from year- Revenue to-date lower fee Institutional mandate wins  Estimated aggregate p

  10. Slide 10: Capital Resources

    CAPITAL RESOURCES Strong liquidity position Balance sheet profile – carrying value  Cash and investment securities1 March 31, 2023 vs. June 30, 2023 ($ in millions) totaled $1,350 million compared to outstanding debt of $306 million  Increase in cash primarily due to 1,292.1 1,349.5 operating acti

  11. Slide 11: 3 Pillars of Strategic Vision

    3 PILLARS OF STRATEGIC VISION We continue to execute on our strategic vision We are using our “Fuel for Growth”Description savings to help enable ourExamples strategy We have identified existing Protect & Grow opportunities to better align U.S. Intermediary our core businesses resources to protect a

  12. Slide 12: Diversify: Privacore

    DIVERSIFY: PRIVACORE Joint venture provides a multi-pronged approach to building a meaningful presence in Alternatives  Open-architecture distributor and trusted Brendan Boyle advisor for alternative investment products Experience includes positions at: tailored to Private Wealth clients Strategic

  13. Slide 13: The Last Twelve Months – A Year of Positive Company Change

    THE LAST TWELVE MONTHS – A YEAR OF POSITIVE COMPANY CHANGE AND TANGIBLE PROGRESS We have a solid foundation, the core team in place, and our plan in motion Refreshed Board Updated Firm Strategy Recruited and Promoted High Quality Talent  Seven new Board  Assembled Strategic  Chief Responsibility

  14. Slide 14: Enhancing Our Culture

    ENHANCING OUR CULTURE We reinforced our culture through articulating our Mission, Values, and Purpose company-wide  Refined and articulated our strategy and developed our Mission, Values, and Purpose  Working to embed longer- term changes throughout the organization to ingrain and sustain purpose

  15. Slide 15: Summary: Organic Growth

    SUMMARY We believe our strategy will lead to organic revenue growth over time Illustrative Organic Growth Historical JHG Future JHG Protect & Amplify Diversify Grow strengths not where clients our core fully give us the businesses leveraged right to win Time 15

  16. Slide 16: Q&A

    Q&A Janus Henderson

  17. Slide 17: Appendix

    APPENDIX Janus Henderson

  18. Slide 18: Assets Under Management

    ASSETS UNDER MANAGEMENT AUM as of June 30, 2023: $322.1 billion By client type By capability By client location 3% 10% 23% 15% 31% 54% 20% 59% 62% 23% Intermediary $175.2bn Equities $199.5bn North America $188.9bn Institutional $73.9bn Fixed Income $65.9bn EMEA & LatAm $99.8bn Self-Directed $73.0bn

  19. Slide 19: Investment Management Capabilities

    INVESTMENT MANAGEMENT CAPABILITIES Diversified product range Alternatives Equities $9.0bn  Wide range of equity strategies Multi-Asset encompassing different geographic $47.7bn focuses and investment styles Fixed Income Intermediary Intermediary  Innovative and differentiated techniques designed t

  20. Slide 20: Largest Strategies by Capability

    LARGEST STRATEGIES BY CAPABILITY AUM ($bn) Capability Strategy 30 Jun 23 US Mid Cap Growth 25.3 US Concentrated Growth 24.1 Equity US Research Growth Equity 19.2 Global Life Sciences 11.4 UK Enhanced Index 8.2 Australian Fixed Income 9.8 Global Strategic Fixed Income 7.2 Fixed Income Absolute Return

  21. Slide 21: 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 7.3 7.7 5.5 4.8 5.6 4.9 5.1 3.3 4.4 3.6 - 1.0 (1.2) (1.9) (3.3) (3.7) (4.1) (4.1) (5.6) (5.8) (7.5) (7.4) (8.2) (8.9) (8.6) (9.6) (11.3) (13.1) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 20

  22. Slide 22: Quarterly Flows by Capability: Multi-Asset and Alternatives

    QUARTERLY FLOWS BY CAPABILITY Multi-Asset and Alternatives Multi-Asset Alternatives ($ in billions) ($ in billions) 4.4 1.6 1.5 1.1 1.0 1.1 0.7 2.2 0.4 0.5 0.4 (0.2) (1.0) (0.8) (0.7) (0.9) (0.3) (0.6) (0.6) (0.8) (2.5) (1.7) (2.1) (1.8) (1.8) (2.2) (1.0) (1.0) (1.1) (1.2) Q2 2022 Q3 2022 Q4 2022 Q1

  23. Slide 23: Net Flows by Capability

    NET FLOWS BY CAPABILITY¹ Total net flows by capability Equities ($ in billions) Fixed Income Multi-Asset Alternatives 5.5 (1.2) (0.5) (0.8) (1.0) (6.2) (5.8) (7.8) (11.0) Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 1 Net flows across all time periods exclude Intech, the s

  24. Slide 24: Investment Performance: AUM Outperforming Benchmark

    INVESTMENT PERFORMANCE % of AUM outperforming benchmark Q3 2022 Q4 2022 Q1 2023 Q2 2023 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 42% 50% 51% 64% 58% 54% 57% 64% 71% 57% 52% 77% 61% 58% 53% 59% Fixed Income 43% 76% 89% 90% 18% 78% 89% 90% 27% 87% 89% 95%

  25. Slide 25: Investment Performance: Top Morningstar Quartiles

    INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles Q3 2022 Q4 2022 Q1 2023 Q2 2023 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 61% 38% 71% 90% 61% 54% 72% 89% 74% 55% 79% 91% 71% 57% 79% 88% Fixed Income 36% 61% 76% 85% 22% 36% 68%

  26. Slide 26: Investment Performance: Morningstar Quartiles (continued)

    INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Group 1st quartile 2nd quartile 91 90 88 87 81 76 76 78 70 70 31 66 40 35 33 60 61 61 31 24 26 33 53 46 35 44 13 43 35 35 37 15 59 55 52 50 50 51 53 40 45 31 34 23 26 25 26 25 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 20

  27. Slide 27: Investment Performance: Equities and Fixed Income Quartiles

    INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Equities Fixed Income 1st quartile 2nd quartile 90 89 91 88 85 79 79 74 76 71 71 72 40 68 69 65 69 66 61 61 50 46 42 61 57 27 44 54 55 38 42 29 31 30 51 52 40 22 25 25 19 37 31 30 41 38 28 26 24 36 34 36 35 28 11

  28. Slide 28: Investment Performance: Multi-Asset and Alternatives Quartiles

    INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Multi-Asset Alternatives 1st quartile 2nd quartile 100100100 100 96 96 96 96 94 96 98 95 97 97 98 93 92 92 94 92 92 95 92 2 2 1 89 16 1 1 3 1 80 77 78 43 43 45 45 42 54 67 45 76 34 14 76 78 80 51 83 89 94 45 92 92

  29. Slide 29: U.S. GAAP: Statement of Income

    U.S. GAAP: STATEMENT OF INCOME Three months ended ($m, except per share data or as noted) 30 Jun 23 31 Mar 23 30 Jun 22 Revenue Management fees 423.5 414.6 453.6 Performance fees (5.9) (14.9) (3.4) Shareowner servicing fees 53.3 51.5 56.3 Other revenue 45.6 44.6 49.0 Total revenue 516.5 495.8 555.5

  30. Slide 30: Alternative Performance Measures

    ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures Three months ended (US$m, except per share data) 30 Jun 23 31 Mar 23 30 Jun 22 Reconciliation of revenue to adjusted revenue Revenue 516.5 495.8 555.5 Management fees 1 (41.8) (40.8) (50.9) Shareowner servicing fees 1 (43

  31. Slide 31: Alternative Performance Measures (continued)

    ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures (continued) Three months ended ($m, except per share data) 30 Jun 23 31 Mar 23 30 Jun 22 Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG Net income attributable to JHG 89.8 87.4

  32. Slide 32: 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

  33. Slide 33: Capital Management

    CAPITAL MANAGEMENT Commitment to return of capital Q3 2021 to Q2 2023 quarterly capital return ($ in millions) Dividends Share repurchases 139.8 131.4 121.1 107.6 75.0 66.9 55.6 43.3 64.7 64.9 64.7 64.6 64.8 64.5 64.3 65.5 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Dividend paid

  34. Slide 34: Performance Fees

    PERFORMANCE FEES AUM generating # of funds Q2 2023 generating Q2 2023 Q1 2023 Q2 2022 pfees Q2 2023 ($m) ($m) ($m) ($bn) pfees Frequency Timing 17 annually; 17 at June; SICAVs 1.4 (0.1) 1.2 1.6 4 3 quarterly 3 on quarters UK OEICs and unit trusts – – 0.1 – – annually various quarterly / Absolute ret

  35. Slide 35: U.S. Mutual Funds with Performance Fees

    U.S. MUTUAL FUNDS WITH PERFORMANCE FEES AUM Performance Q2 2023 P&L 30 Jun 23 Base Performance cap/(floor) vs impact Mutual funds with performance fees¹ ($m) Benchmark fee fee2 benchmark ($000s) Research Fund and Portfolio 18,362 Russell 1000® Growth Index 0.64% ± 15 bps ± 5.00% (6,821) ® Forty Fund

  36. Slide 36: 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 22 20 2 – – – 2022 annual grant 96 68 25 3 – – 2023 annual grant 112 56 37 17 2 – Other

  37. Slide 37: 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 37

  38. Slide 38: Contact us and 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 — Q2 2023 Earnings Presentation on 6ix