Slide 1: Preliminary Fourth Quarter and Fiscal Year 2025 Results
Franklin Resources, Inc. Preliminary Fourth Quarter and Fiscal Year 2025 Results November 7, 2025 | Investor Presentation Jenny Johnson Daniel Gamba Matthew Nicholls Adam Spector Chief Executive Officer Co-President Co-President Chief Executive Officer, Chief Commercial Officer CFO & COO Fiduciary T
Slide 2: Forward-looking statements and non-GAAP financial information
Forward-looking statements and non-GAAP financial information This commentary contains forward-looking statements that involve a number of known and unknown risks, uncertainties and other important factors. This commentary also contains non-GAAP financial measures. For the reconciliations from US GA
Slide 3: Fiscal Year 2025 Business Highlights
Fiscal Year 2025 Business Highlights • AUM of $1.66 trillion comprised of investment capabilities across public and private markets - Diversified by specialist investment manager, asset class, vehicle, and geography • Long-term inflows increased 7.8% to $343.9 billion from the prior year • Long-term
Slide 4: Fiscal Year 2025 Business Highlights
Fiscal Year 2025 Business Highlights Investment • Over half of mutual fund/ETF AUM outperformed peer median in all periods Performance • Over half of composite AUM outperformed its benchmark in all periods • International AUM of nearly $500 billion and excluding Western, positive long-term net flows
Slide 5: Fourth Quarter 2025 Financial Highlights
Fourth Quarter 2025 Financial Highlights1 Key metrics • Adjusted revenues increased 13.9% from the prior quarter and (in US$ millions, except AUM in billions and per share data) 5.7% from the prior year quarter. Adjusted performance fees were % Change $177.9 million compared to $58.5 million in the
Slide 6: Fiscal Year 2025 Financial Highlights
Fiscal Year 2025 Financial Highlights1 Key metrics • Adjusted operating revenues increased 2.1% from the prior year (in US$ millions, except AUM in billions and per share data) primarily due to an additional quarter of Putnam, higher average % Change AUM, and higher performance fees, partially offse
Slide 7: 5-Year Plan Progress Report
5-Year Plan Year 1 Progress Report
Slide 8: Strong Execution on 5-Year Plan in FY 2025
Strong Execution on 5-Year Plan in FY 2025 Year 1 Progress Report 5-year Goals FY’25 Update • Over half of mutual fund/ETF AUM outperformed peer median and over half of Investment Mgmt composite AUM outperformed its benchmark in all periods Improve Investment Performance • Simplified investment mana
Slide 9: Strong Execution on 5-Year Plan in FY 2025
Strong Execution on 5-Year Plan in FY 2025 Year 1 Progress Report 5-year Goals FY’25 Update Continued return of capital to shareholders • Returned $930M to shareholders through dividends ($690M) and share repurchases ($240M) Capital Mgmt Additional balance sheet investments in • Continued to make in
Slide 10: Selected Focus Areas from 5-Year Plan
Selected Focus Areas from 5-Year Plan Year 1 Progress Report Market Opportunity Franklin Templeton’s Positioning • One of the largest Alternative AUM Alternatives AUM and revenue 2 $100B managers of alternative $250B $270B projected to grow at 9% CAGR assets 5% 6% • Projected to reach more than 50%
Slide 11: Selected Focus Areas from 5-Year Plan
Selected Focus Areas from 5-Year Plan Year 1 Progress Report Market Opportunity Franklin Templeton’s Positioning Customization, direct ownership • Retail SMAs have grown at Retail SMA AUM and tax efficiency driving investors a 21% CAGR since FY’23 (US$ in billions) to SMAs ’23 to ’25 CAGR: 21% • Off
Slide 12: Selected Focus Areas from 5-Year Plan
Selected Focus Areas from 5-Year Plan Year 1 Progress Report Market Opportunity Franklin Templeton’s Positioning Active ETFs have emerged as a • ETF AUM has grown at a CAGR ETF AUM $93 mainstream product of 75% since FY’23 (US$ in billions) • Active ETFs constitute 10% of industry • 16 consecutive q
Slide 13: Selected Focus Areas from 5-Year Plan
Selected Focus Areas from 5-Year Plan Year 1 Progress Report Market Opportunity Franklin Templeton’s Positioning Private Wealth Management Wealth Management represents an • Adam Spector appointed CEO of (Fiduciary Trust International) attractive business model due to Fiduciary Trust International (U
Slide 14: Fourth Quarter and Fiscal Year 2025 AUM and Investment Performance
Fourth Quarter and Fiscal Year 2025 AUM and Investment Performance
Slide 15: AUM and Adjusted Revenue Diversification
AUM and Adjusted Revenue Diversification Diversified by asset class, client type, and Q4 Adjusted Operating Revenue by SIM region As of September 30, 2025 AUM of $1.66 trillion as of September 30, 2025 Cash 5% HNW 3% Americas 7% Multi-Asset 13% APAC 10% 17% 12% Institutional All other SIMs Alternati
Slide 16: Investment Performance
Investment Performance Percentage of AUM above peer median and benchmark1 As of September 30, 2025 62% 62% 57% 53% 55% 54% 51% 52% 1-year 3-year 5-year 10-year Mutual funds vs. peers Strategy composites vs. benchmark • Mutual Funds: Over half of mutual fund/ETF AUM outperformed peer median in all pe
Slide 17: Long-term flows
Long-term flows1 (In US$ billions) AUM and Flows 319.0 343.9 96.9 20.7 30.4 82.5 86.8 84.6 3.2 20.1 3.3 75.6 3.0 3.9 17.9 7.4 7.8 11.4 16.0 44.5 5.7 (9.3) (11.9) (32.6) (31.3) (26.2) (50.0) (97.4) (84.9) (96.5) (113.8) (113.0) (146.9) (351.6) (441.3) Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 2024 2 2025 Lo
Slide 18: AUM and Flows
AUM and Flows (in US$ billions, for the three months ended) Equity: $686 billion Fixed Income: $439 billion 159.7 123.3 142.5 55.9 114.7 36.8 38.9 32.9 33.0 26.4 26.5 28.2 33.6 32.0 12.5 10.6 6.4 17.3 0.8 1.4 0.3 2.8 3.5 (5.4) (0.6) (6.0) (0.4) (30.5) (6.9) (33.9) (13.0) (12.6) (38.8) (36.0) (32.6)
Slide 19: AUM and Flows
AUM and Flows (in US$ billions, for the three months ended) Alternative: $264 billion Multi-Asset: $194 billion 46.3 8.5 23.2 12.9 12.4 11.2 36.5 9.8 6.6 5.6 5.7 16.7 14.6 8.7 4.0 6.4 7.4 4.4 3.4 12.9 3.4 3.3 12.8 0.8 3.1 3.2 2.8 1.8 8.0 1.7 2.5 3.2 0.7 4.2 (1.0) (2.1) (2.6) (3.1) (2.5) (10.3) (5.0)
Slide 20: Fourth Quarter and Fiscal Year 2025 Financial Results
Fourth Quarter and Fiscal Year 2025 Financial Results
Slide 21: Financial Results
Financial Results1 (GAAP and non-GAAP in US$ millions except per share data, for the three and twelve months ended) US GAAP Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 FY2024 FY2025 US GAAP Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 FY2024 FY2025 Operating Net (150.7) 219.0 145.6 154.1 85.4 407.6 604.1 (84.7) 163.6
Slide 22: Financial Results
Financial Results1 (Non-GAAP in US$ millions except EFR) Adjusted operating revenue and effective fee rate 2 Adjusted operating expenses 38.3 37.5 37.4 37.2 38.3 37.5 37.5 6,701 6,565 5,061 4,852 1,815 1,717 1,683 1,610 1,593 1,265 1,270 1,343 1,233 1,215 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 FY 2024 F
Slide 23: Capital Management
Capital Management Dividends and share repurchases Allocation of cash and investments1 Debt3 (In US$ millions, for the trailing twelve months ended) (In US$ billions, as of September 30, 2025) (In US$ millions, as of September 30, 2025) 6.7 274 221 276 240 220 3.3 677 686 690 850 671 682 0.5 2.9 550
Slide 24: Appendix
Appendix
Slide 25: AUM and Flows
AUM and Flows Three months ended Twelve months ended Sept 30, Jun 30, September 30, 1 (In US$ billions) 2025 2025 % Change 2025 2024 % Change Beginning AUM $ 1,611.8 $ 1,540.6 4.6% $ 1,678.6 $ 1,374.2 22.2% Long-term inflows 84.6 75.6 11.9% 343.9 319.0 7.8% Long-term outflows (96.5) (84.9) (13.7%) (
Slide 26: Alternative AUM Roll Forward
Alternative AUM Roll Forward (in US$ billions) Three months and fiscal year ended September 30, 2025 Three Months Ended September 30, 2025 Fiscal Year Ended September 30, 2025 Private Markets1 Liquid & Other Total Private Markets1 Liquid & Other Total Beginning AUM $237.6 $20.7 $258.4 $227.8 $22.1 $
Slide 27: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Revenues1 Sep-25 Sep-25 Adjusted vs. Adjusted vs. Sep-25 Sep-25 Jun-25 Jun-25 Sep-24 Sep-24 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment management fees, ex. 1,668.2
Slide 28: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Sep-25 Sep-25 Expenses1 Adjusted vs. Adjusted vs. Sep-25 Sep-25 Jun-25 Jun-25 Sep-24 Sep-24 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Compensation & benefits 1,005.7 (111.0)
Slide 29: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Other Income (Expense), Net1 Sep-25 Sep-25 Adjusted vs. Adjusted vs. Sep-25 Sep-25 Jun-25 Jun-25 Sep-24 Sep-24 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment and other
Slide 30: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended September 30, 2025 Unrealized Consolidated Sales, Special Tax Expense US GAAP Acquisition- Investment Deferred Comp Non-GAAP (in US$ millions except per share data) Investment Distribution and Termination of Basis Related (Gain
Slide 31: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended June 30, 2025 Unrealized Consolidated Sales, Special Tax Expense US GAAP Acquisition- Investment Deferred Comp Non-GAAP (in US$ millions except per share data) Investment Distribution and Termination of Basis Related (Gains) Pl
Slide 32: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended September 30, 2024 Unrealized Consolidated Sales, Special Tax Expense US GAAP Acquisition- Investment Deferred Comp Non-GAAP (in US$ millions except per share data) Investment Distribution and Termination of Basis Related (Gain
Slide 33: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Twelve months ended September 30, 2025 Unrealized Consolidated Sales, Special Tax Expense US GAAP Acquisition- Investment Deferred Comp Non-GAAP (in US$ millions except per share data) Investment Distribution and Termination of Basis Related (Gai
Slide 34: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Twelve months ended September 30, 2024 Unrealized Consolidated Sales, Special Tax Expense US GAAP Acquisition- Investment Deferred Comp Non-GAAP (in US$ millions except per share data) Investment Distribution and Termination of Basis Related (Gai