Slide 1: 2016 Full Year Results
JUPITER 2016 Full Year Results
Slide 2: 2016 in review
2016 FULL YEAR RESULTS 1 2016 in review Sustained delivery in a volatile environment Continued focus on our clients Consistent 3 year investment performance Value proposition and transparency Performance Maintaining AUM growth and diversification £1.0bn of net flows AUM increased from £3
Slide 3: Full year highlights
2016 FULL YEAR RESULTS 2 Full year highlights Strong performance in a volatile environment Measure 2016 2015 Change Net revenue £351.4m £329.5m +7% Net management fees £330.2m £300.8m +10% Net management fee margins 87bps 88bps Adjusted EBITDA £171.6m £168.1m +2% Adjusted EBITDA margin 49% 51% Profi
Slide 4: Revenue
2016 FULL YEAR RESULTS 3 Revenue Management fee growth of 10% Net revenue Net revenue (£ million) £ million 2016 2015 +/- % 351 329 6 Net management fees 330.2 300.8 +10% 15 303 15 Net initial charges 15.0 14.1 289 14 13 Performance fees 6.2 14.6 16 245 Net revenue 351.4 329.5 +7% 14 The full year
Slide 5: Net management fee margins
2016 FULL YEAR RESULTS 4 Net management fee margins Key driver remains continued growth of fixed income Business mix bps 2012 2013 2014 2015 2016 Margin* 93.3 90.4 88.3 87.5 87.3 Limited decline in net management fee margin in 2016 Continued shift towards fixed income and lower margin equity pro
Slide 6: Fixed costs
2016 FULL YEAR RESULTS 5 Fixed costs Maintaining cost discipline while investing for growth Fixed costs Fixed costs (£ million) and % of net management fees 4500% 4450% 4400% 4350% 4300% 4250% 4200% £ million 2016 2015 +/- % 37 4150% 4100% 36 4050% 4000% 3950% 3900% 3850% 33 3800% 3750% 33 3700% 32
Slide 7: Variable costs
2016 FULL YEAR RESULTS 6 Variable costs Variable compensation ratio now tracking steady state expectations Variable costs Variable costs and compensation ratio £ million 2016 2015 +/- % 28 28 Cash bonus 42.4 45.5 25 26 25 Deferred bonus 10.6 10.1 LTIP, SAYE and SIP 13.6 10.8 21 24 Variable costs 66.
Slide 8: Earnings
2016 FULL YEAR RESULTS 7 Earnings Increased EBITDA Sustained profitability Underlying earnings per share 53 51 51 51 49 29.2 29.4 26.4 25.2 172 168 156 152 19.0 124 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Adjusted EBITDA (£ million) Adjusted EBITDA margin (%) Underlying EPS (p) JUPITERAM.C
Slide 9: Dividends
2016 FULL YEAR RESULTS 8 Dividends Sharing the rewards of growth 7% increase in total dividends Dividend progression (pence per share) Split of available profit* 25.5 27.2 24.7 5% 12.6 12.5p 28% 24% 8.8 10.6 10.2 4.9 9.5 9.1 12.5 6.3 10.9 14% 6.6 29% 4.5 3.5 3.7 4.0 2.5 14.7p Staff incentives Corpor
Slide 10: Resilient balance sheet
2016 FULL YEAR RESULTS 9 Resilient balance sheet Robust post-dividend liquidity and regulatory capital positions Liquidity (£ million) Regulatory capital (£ million) £ million 2016 Ordinary shareholder funds 610 98 104 96 Less: goodwill and illiquid assets1 (345) Tangible capital 265 Less: provision
Slide 11: Delivering value to clients
2016 FULL YEAR RESULTS 10 Delivering value to clients 1 2 3 Sell this expertise Deliver through products Deliver attractive outperformance suited to our returns to after fees to our distribution shareholders clients strengths JUPITERAM.COM
Slide 12: Jupiter delivers outperformance after fees
2016 FULL YEAR RESULTS 11 Jupiter delivers outperformance after fees We focus on areas where we can deliver value 5 year AUM weighted performance (%) There is an 13.5 13.3 ongoing discussion around 12.0 11.8 active versus passive This discussion tends to look across the whole of the market Jup
Slide 13: Our focus on active management leads to outperformance for clients
2016 FULL YEAR RESULTS 12 Our focus on active management leads to outperformance for clients 5 year fund performance after fees: value proposition 5 year performance (%) Over the long term Jupiter Fund Index we have been able to deliver 18 above index 16 17 returns 13 14 14 13 13 13 13 Our large
Slide 14: Value proposition and transparency for clients
2016 FULL YEAR RESULTS 13 Value proposition and transparency for clients Continued focus on clients 2017 2014 2015 2016 2018 Scoping and Review of SICAV Implement new Review of UT New UT pricing implementation pricing SICAV pricing pricing goes live of new UT pricing Investment performance Broad
Slide 15: Value proposition and transparency: changes we will make
2016 FULL YEAR RESULTS 14 Value proposition and transparency for clients Changes we will make 2017 2014 2015 2016 2018 Scoping and Review of SICAV Implement new Review of UT New UT pricing implementation pricing SICAV pricing pricing goes live of new UT pricing Two pro-active changes we are going
Slide 16: Performance numbers
2016 FULL YEAR RESULTS 15 Performance numbers Generating value for our clients Three year mutual fund performance Commentary Long-term track record maintained 61% of AUM in top quartile over three years 17% (YE 2015: 47%) 66% of AUM above median over three years (YE 2015: 68%) 23% 27% 17% St
Slide 17: Performance of funds greater than £1bn
2016 FULL YEAR RESULTS 16 Performance of funds greater than £1bn Three year investment performance across our largest funds AUM at AUM at AUM at 4th quartile 3rd quartile 2nd quartile 1st quartile Dec 15 Jun 16 Dec 16 Dynamic Bond* £3,748m £4,957m £6,209m European £3,666m £3,726m £3,780m Strategic B
Slide 18: Turning performance into flows
2016 FULL YEAR RESULTS 17 Turning performance into flows 2016 net flows and AUM Movement in AUM (£ billion) AUM up 13% to £40.5bn, with healthy underlying organic 41 flow growth 40 Market growth of £3.8bn driven by foreign exchange movements on non-sterling 39 3.8 assets during the period 38 40.
Slide 19: Positive effect of historic flows
2016 FULL YEAR RESULTS 18 Positive effect of historic flows Long term record of organic flow growth Cumulative net mutual fund flows (£ billion) Focused asset manager, generating consistent net inflows across the cycle 13 12 £11.2bn cumulative mutual 11 fund inflows over past eight 10 years 9
Slide 20: Diversification of our product range
2016 FULL YEAR RESULTS 19 Diversification of our product range Growth of fixed income and European equities Split of AUM by asset class Evolution and diversification are constant themes as we continually adapt to investor needs Demand for fixed income and European equities has created a more div
Slide 21: Diversification of client type
2016 FULL YEAR RESULTS 20 Diversification of client type Continuing international growth Gross mutual fund flow split SICAV AUM Increasing interest from retail Unit trusts SICAV Other Fixed income clients outside of the UK Italian and Spanish offices 21% 23% launched 35% 48% 46% New staff in Z
Slide 22: International distribution strategy: targeted expansion
2016 FULL YEAR RESULTS 21 International distribution strategy: targeted expansion Italian and Spanish offices opened through the ‘follow your client’ approach Hong Kong / Taiwan Singapore New 2016 office Local office Remote access Qatar / 3rd party UAE / arrangement Oman JUPITERAM.COM
Slide 23: Further growth opportunities
2016 FULL YEAR RESULTS 22 Further growth opportunities Developing products to drive future growth Distribution unit trust (AUM in £ million) Absolute Return unit trust (AUM in £ million) 1,000 750 750 500 500 250 250 0 0 Dec 13 Dec 14 Dec 15 Dec 16 Dec 13 Dec 14 Dec 15 Dec 16 India unit trust (AUM i
Slide 24: Consistent delivery
2016 FULL YEAR RESULTS 23 Consistent delivery Benefits of investing for growth Scalable operating platform Strong growth in revenues against a volatile 51 49 backdrop 330 301 Continuing to invest in our core platform and 285 revenue enhancing opportunities 267 226 Absolute cost increase is low
Slide 25: Delivering on our goals
2016 FULL YEAR RESULTS 24 Delivering on our goals 1 Good progress on implementing our strategy 2 Delivering outperformance after fees 3 Diversifying product and distribution capabilities 4 Increasing cash returns to shareholders 5 Attractive growth prospects JUPITERAM.COM
Slide 26: Q&A
2016 FULL YEAR RESULTS 25 Q&A JUPITERAM.COM
Slide 27: Forward-looking statements
Forward-looking statements This presentation may contain certain “forward-looking acquisitions or combinations within relevant industries; and statements” with respect to certain plans of Jupiter Fund the impact of changes in capital, solvency or accounting Management plc (Jupiter) and its current g