Slide 1: Franklin Resources, Inc. First Quarter 2025 Results
Franklin Resources, Inc. First Quarter 2025 Results January 31, 2025 | Investor Presentation Jenny Johnson Matthew Nicholls Adam Spector President Executive Vice President Executive Vice President Chief Executive Officer Chief Financial Officer Head of Global Distribution Chief Operating Officer
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: First Quarter 2025 Business Highlights
First Quarter 2025 Business Highlights Franklin Templeton is one of the most comprehensive global asset managers with $1.58 trillion in AUM; diversified by specialist investment manager, asset class, vehicle, and geography • Long-term inflows improved 34% from the prior year quarter (excluding reinv
Slide 4: First Quarter 2025 Financial Summary
First Quarter 2025 Financial Summary1 Key metrics (in US$ millions, except AUM in billions and per share data) Q1 2025 Q4 2024 Q1 2024 2 Ending AUM $ 1,575.7 $ 1,678.6 $ 1,455.5 Average AUM2 1,634.5 1,667.5 1,394.2 Adj. revenue 1,682.7 1,716.5 1,529.1 Adj. operating income 412.8 451.6 417.0 Adj. net
Slide 5: First Quarter 2025 AUM and Investment Performance
First Quarter 2025 AUM and Investment Performance
Slide 6: Diversification by Asset Class, Client Type, Region, and SIM
Diversification by Asset Class, Client Type, Region, and Specialist Investment Manager (“SIM”) AUM by asset class, client type, and region Q1 Adjusted Operating Revenue by SIM AUM of $1.58 trillion as of December 31, 2024 As of December 31, 2024 Cash 4% HNW 3% Americas 7% 11% Multi-Asset 11% APAC 11
Slide 7: Investment Performance Summary
Investment Performance Summary Percentage of AUM above peer median and benchmark1 As of December 31, 2024 67% 63% 53% 53% 50% 51% 45% 46% 1-year 3-year 5-year 10-year Mutual funds vs. peers Strategy composites vs. benchmark • Mutual Funds: Compared to the prior quarter, investment performance improv
Slide 8: AUM and Flows
AUM and Flows1 (in US$ billions, for the three months ended) Total AUM: $1.58 trillion 97.8 84.9 82.7 82.5 68.9 20.1 3.1 3.6 3.2 10.8 6.9 5.7 4.1 2.8 3.3 17.9 (5.0) (3.2) (31.3) (50.0) (73.9) (78.0) (85.9) (113.8) (147.8) Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Long-term Long-term Long-term net Ex-Wester
Slide 9: AUM and Flows: Equity and Fixed Income
AUM and Flows (in US$ billions, for the three months ended) Equity: $620 billion Fixed Income: $470 billion 55.9 43.8 36.8 37.4 33.0 27.0 27.5 32.0 28.3 26.4 12.5 8.3 0.8 (0.3) 3.6 1.7 1.4 0.3 0.2 (5.3) (1.6) (8.4) (4.8) (26.8) (32.8) (36.7) (33.6) (36.0) (43.4) (35.5) (42.2) (33.9) (66.9) (66.7) (9
Slide 10: AUM and Flows: Alternative and Multi-Asset
AUM and Flows (in US$ billions, for the three months ended) Alternative: $249 billion Multi-Asset: $174 billion 10.2 11.2 5.9 9.9 8.7 2 7.7 4.0 4.3 2.7 3.4 3.4 1 1 2.9 2.8 3.4 1.0 1.4 0.7 1.7 1.8 0.5 0.8 (1.0) (2.4) (2.0) (3.2) (3.5) (5.0) (5.9) (7.2) (7.3) (7.8) (8.1) Dec-23 Mar-24 Jun-24 Sep-24 De
Slide 11: First Quarter 2025 Financial Results
First Quarter 2025 Financial Results
Slide 12: Financial Results
Financial Results1 (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) 2 2 US GAAP Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 US GAAP Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Operating 206.5 129.3 222.5 (150.7) 219.0 Net Income 251.3 124.2 174.0 (84.7) 163.6 Income Operating 10.4
Slide 13: Financial Results: Revenue and Expenses
Financial Results1 (Non-GAAP in US$ millions except EFR) Adjusted operating revenue and effective fee rate 2 Adjusted operating expenses 39.7 38.5 37.5 37.4 37.2 1,665 1,654 1,717 1,683 1,529 1,246 1,229 1,265 1,270 1,112 Dec-23 3 Mar-24 Jun-24 Sep-24 Dec-24 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Adj Op
Slide 14: 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 December 31, 2024) (In US$ millions, as of December 31, 2024) 6.3 309 360 301 274 221 3.1 671 677 850 628 643 656 0.4 2.8 550 4
Slide 15: Appendix
Appendix
Slide 16: AUM and Flows
AUM and Flows Dec 31, Sept 30, Dec 31, 1 (In US$ billions) 2024 2024 % Change 2023 % Change Beginning AUM $1,678.6 $1,646.6 1.9% $1,374.2 22.2% Long-term inflows 97.8 82.5 18.5% 68.9 41.9% Long-term outflows (147.8) (113.8) 29.9% (73.9) 100.0% Long-term net flows (50.0) (31.3) 59.7% (5.0) 900.0% Cas
Slide 17: Alternative AUM Roll Forward
Alternative AUM Roll Forward (in US$ billions) Three months ended December 31, 2024 Private Markets1 Liquid & Other Total Beginning Balance $223.8 $26.1 $249.9 Fundraising2 4.3 1.7 6.0 Outflows (1.2) (2.3) (3.5) Realizations & distributions (3.3) (0.5) (3.8) Net market change, FX, other2 1.4 (1.2) 0
Slide 18: Financial Results: Revenues
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Revenues1 Dec-24 Dec-24 Adjusted vs. Adjusted vs. Dec-24 Dec-24 Sep-24 Sep-24 Dec-23 Dec-23 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment management fees, ex. 1,657.7
Slide 19: Financial Results: Expenses
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Dec-24 Dec-24 Expenses1 Adjusted vs. Adjusted vs. Dec-24 Dec-24 Sep-24 Sep-24 Dec-23 Dec-23 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Compensation & benefits 991.4 (128.4) 8
Slide 20: Financial Results: Other Income (Expense), Net
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Other Income (Expense), Net1 Dec-24 Dec-24 Adjusted vs. Adjusted vs. Dec-24 Dec-24 Sep-24 Sep-24 Dec-23 Dec-23 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment and other
Slide 21: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended December 31, 2024 Consolidated Sales, Special Unrealized US GAAP Acquisition- Deferred Comp Non-GAAP (in US$ millions except per share data) Investment distribution and Termination investment Basis related Plan and other Basis
Slide 22: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended September 30, 2024 Consolidated Sales, Special Unrealized US GAAP Acquisition- Deferred Comp Non-GAAP (in US$ millions except per share data) Investment distribution and Termination investment Basis related Plan and other Basis
Slide 23: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended December 31, 2023 Consolidated Sales, Special Unrealized US GAAP Acquisition- Deferred Comp Non-GAAP (in US$ millions except per share data) Investment distribution and Termination investment Basis related Plan and other Basis