Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Q3 2009 Earnings Presentation
20 slides from Franklin Resources's earnings presentation, Jul 30, 2009
Slide 1: Franklin Resources, Inc. Third Quarter Results
Internal Use Only / Not for Distribution to the Public Franklin Resources, Inc. Third Quarter Results July 30, 2009 EXHIBIT 99.2
Slide 2: Risk factors and forward-looking statements
2 The ongoing volatility and disruption of the capital and credit markets, and adverse changes in the global economy, have significantly affected our results of operations and may continue to put pressure on our financial results. The amount and mix of our assets under management are subject to sign
Slide 3: Highlights of the Quarter
4 Highlights of the Quarter Equity relative investment performance continues to improve Long-term net new flows rebounded to $6.6B and long-term net flows improved and were positive in all investment objectives Operating income increased 46% as revenue recovered and we remained disciplined on cost m
Slide 4: Assets Under Management
ASSETS UNDER MANAGEMENT
Slide 5: Assets Under Management
6 Assets Under Management End of Period Simple Monthly Average $451.2 $416.2 $507.3 $580.2 $391.1 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 $428.0 $396.6 $602.9 $555.4 $438.7 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 (in billions, for the three months ended)
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Slide 7: Flow Summary
FLOW SUMMARY
Slide 8: Long-term flows
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Slide 9: United States and International Flows
10 $17.3 $12.4 $8.5 ($18.2) ($16.4) ($14.3) United States and International Flows United States (in billions, for the three months ended) International $18.1 ($12.7) $13.4 $18.7 $14.9 $13.5 ($17.0) ($16.1) ($20.2) ($24.8) 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 $9.8 ($9.7) $6.4 $24.1 $23.6
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Slide 11: Investment Performance
INVESTMENT PERFORMANCE
Slide 12: Investment Performance
13 % of U.S. Long-Term Assets in Top Two Lipper Quartiles Investment Performance 95% 61% 84% 89% 71% 94% 66% 88% 1 - Year 3 - Year 5 - Year 10 - Year 83% 86% 61% 95% 83% 44% 93% 58% 1 - Year 3 - Year 5 - Year 10 - Year 94% 64% 64% 95% 91% 93% 91% 95% 1 - Year 3 - Year 5 - Year 10 - Year 97% 89% 62%
Slide 13: Investment Performance
14 Investment Performance 89% 96% 87% 85% 93% 87% 38% 73% 1 - Year 3 - Year 5 - Year 10 - Year 99% 99% 99% 98% 100% 99% 100% 99% 1 - Year 3 - Year 5 - Year 10 - Year 77% 81% 29% 97% 82% 27% 94% 25% 1 - Year 3 - Year 5 - Year 10 - Year Templeton Equity Mutual Series Equity Franklin Equity Lipper rank
Slide 14: Operating Results
OPERATING RESULTS
Slide 15: Quarterly Financial Highlights
16 Unaudited $403.3 $300.5 $120.9 $110.8 $297.7 Quarterly Financial Highlights Operating and Net Income Diluted Earnings Per Share $1.29 $0.48 $1.71 $1.28 $0.52 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 (in millions, for the three months ended) $326.2 $223.3 $532.2 $412.0 $268.4 30-Jun-08 30
Slide 16: Operating Revenues
17 Unaudited 30-Jun-09 31-Mar-09 Jun-09 vs. Mar-09 31-Dec-08 30-Sep-08 30-Jun-08 Jun-09 vs. Jun-08 13% (32%) 20% (28%) 1% (8%) 61% 4% NM (20%) Total Operating Revenues 1,073.6 $ 912.3 $ 18% 969.3 $ 1,321.5 $ 1,521.6 $ (29%) Operating Revenues (in millions, for the three months ended) Investment mana
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Slide 20: Operating Margin and Capital Management
20 44% 74% 34% 62% 37% Unaudited 11% 15% 40% 44% 16% 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 55% 89% 74% 106% 53% Operating Margin Operating Margin and Capital Management 35.0% 31.2% 27.7% 24.5% 30.4% 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 Stock Repurchase Activity Dividend and