Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Q2 FY2011 Earnings Presentation
19 slides from Franklin Resources's earnings presentation, Apr 28, 2011
Slide 1: Preliminary Second Quarter Results – April 28, 2011
Exhibit 99.2 FRANKLIN RESOURCES, INC. Franklin Resources, Inc. Preliminary Second Quarter Results – April 28, 2011
Slide 2: Forward-Looking Statements
FRANKLIN RESOURCES, INC. Forward-Looking Statements The financial results in this presentation are preliminary. Statements in this presentation regarding Franklin Resources, Inc. (“Franklin”) and its subsidiaries, which are not historical facts, are "forward-looking statements" within the meaning of
Slide 3: Audio Commentary and Conference Call Details
FRANKLIN RESOURCES, INC. Audio Commentary and Conference Call Details Pre-recorded audio commentary on the results from Franklin Resources, Inc.’s President and Chief Executive Officer Greg Johnson and Executive Vice President and Chief Financial Officer Ken Lewis will be available today at approxim
Slide 4: Highlights of the Quarter
FRANKLIN RESOURCES, INC. Highlights of the Quarter • Assets under management increased 5% to over $700 billion • Long-term net new flows of $9.0 billion • Operating income of $629 million, a 37% increase from the prior year 4
Slide 5: Assets Under Management and Flows
FRANKLIN RESOURCES, INC. Assets Under Management and Flows
Slide 6: Assets Under Management
FRANKLIN RESOURCES, INC. Assets Under Management (in billions, for the three months ended) End of Period Simple Monthly Average $703.5 $687.2 $670.7 $644.9 $655.6 $604.7 $586.8 $583.1 $570.5 $561.2 31-Mar-10 30-Jun-10 30-Sep-10 31-Dec-10 31-Mar-11 31-Mar-10 30-Jun-10 30-Sep-10 31-Dec-10 31-Mar-11 6
Slide 7: Assets Under Management by Investment Objective and Sales Region
FRANKLIN RESOURCES, INC. Assets Under Management By Investment Objective By Sales Region (chart is as of March 31, 2011) (chart is as of March 31, 2011) Cash Canada Management 5% 1% Asia-Pacific2 11% Fixed- Income Equity 39% 44% Europe1 16% United States 68% Hybrid 16% (in billions) 31-Mar-11 31-Dec
Slide 8: Market Appreciation and Flows Summary
FRANKLIN RESOURCES, INC. Market Appreciation and Flows Summary (in billions, for the three months ended) Appreciation (Depreciation) and Other Long-Term Flows1 $55.7 $54.9 $55.6 $51.0 $48.9 $46.4 $24.1 $23.4 $17.8 $18.2 $19.1 $16.5 $15.4 $9.0 $3.4 ($29.3) ($33.6) ($31.7) (40.8) ($34.5) ($46.4) ($52.
Slide 9: United States and International Flows
FRANKLIN RESOURCES, INC. United States and International Flows (in billions, for the three months ended) United States1 International $28.5 $27.9 $27.0 $26.0 $25.8 $27.1 $24.4 $25.0 $23.1 $22.0 (19.7) ($13.2) ($16.1) ($16.3) ($15.3) ($15.4) ($18.3) ($22.4) ($21.1) ($24.0) ($31.7) 31-Mar-10 30-Jun-10
Slide 10: Net New Flows by Investment Objective
FRANKLIN RESOURCES, INC. Net New Flows by Investment Objective (in billions, for the three months ended) Mar-11 vs. Mar-11 vs. 31-Mar-11 31-Dec-10 31-Mar-10 Dec-10 Mar-10 Equity sales $ 21.1 $ 19.9 6% $ 14.7 44% Equity redemptions (23.7) (18.4) 29% (15.1) 57% Equity net exchanges 0.3 0.6 (50%) (0.1)
Slide 11: Investment Performance
FRANKLIN RESOURCES, INC. Investment Performance
Slide 12: Investment Performance – Lipper Rankings of U.S.-Registered Long-Term Mutual Funds
FRANKLIN RESOURCES, INC. Investment Performance – Lipper Rankings of U.S.-Registered Long-Term Mutual Funds1 Percentage of Assets in the Top Two Quartiles Franklin Templeton By Category as of March 31, 2011 70% 94% Franklin 85% 89% Equity 81% 82% 82% 82% 78% 87% 72% Templeton 95% Equity 20% 92% 52%
Slide 13: Operating Results
FRANKLIN RESOURCES, INC. Operating Results
Slide 14: Quarterly Financial Highlights
Unaudited FRANKLIN RESOURCES, INC. Quarterly Financial Highlights (in millions, except per share data, for the three months ended) Operating and Net Income1 Diluted Earnings Per Share2 $2.23 $2.25 $659 $629 $522 $509 $1.65 $1.55 $1.58 $461 $503 $501 $373 $357 $360 31-Mar-10 30-Jun-10 30-Sep-10 31-De
Slide 15: Operating Revenues
Unaudited FRANKLIN RESOURCES, INC. Operating Revenues (in millions, for the three months ended) Mar-11 vs. Mar-11 vs. 31-Mar-11 31-Dec-10 30-Sep-10 30-Jun-10 31-Mar-10 Dec-10 Mar-10 Investment management fees $ 1,076.7 $ 1,040.9 3% $ 919.4 $ 915.9 $ 836.1 29% Sales and distribution fees 587.2 577.8
Slide 16: Operating Expenses
Unaudited FRANKLIN RESOURCES, INC. Operating Expenses (in millions, for the three months ended) Mar-11 vs. Mar-11 vs. 31-Mar-11 31-Dec-10 30-Sep-10 30-Jun-10 31-Mar-10 Dec-10 Mar-10 Sales, distribution and marketing $ 677.0 $ 647.1 5% $ 599.0 $ 590.9 $ 557.4 21% Compensation and benefits 315.8 292.4
Slide 17: Other Income
Unaudited FRANKLIN RESOURCES, INC. Other Income (in millions, for the three months ended March 31, 2011) 3.1 (8.4) 9.8 (5.8) (6.4) 27.1 49.1 19.5 10.2 Dividend, interest Equity m ethod Available-for-sale Consolidated Trading Interest Expense Consolidated Other Total and capital gain investm ents inv
Slide 18: Operating Results
Unaudited FRANKLIN RESOURCES, INC. Operating Results (in millions, except per share data, for the three months ended) Mar-11 vs. Mar-11 vs. 31-Mar-11 31-Dec-10 30-Sep-10 30-Jun-10 31-Mar-10 Dec-10 Mar-10 Income Before Taxes 678.6 697.6 (3%) 552.4 494.8 508.3 34% Taxes on income 183.0 207.5 (12%) 176
Slide 19: Operating Margin and Capital Management
Unaudited FRANKLIN RESOURCES, INC. Operating Margin and Capital Management (in millions, except as noted, as of and for the period ended) Quarterly Operating Margin Quarterly Stock Repurchase Activity 38.8% 36.0% 32.6% 34.0% 33.3% 227.4 225.4 224.0 223.3 221.8 2.1 1.7 1.7 1.8 1.1 31-Mar-10 30-Jun-10