Slide 1: Franklin Resources, Inc. Third Quarter 2026 Results
Franklin Resources, Inc. Third Quarter 2026 Results July 31, 2026 | Investor Presentation
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: Third Quarter 2026 Business Highlights
Third Quarter 2026 Business Highlights • AUM of $1.79 trillion reflects investment capabilities across public and private markets • Long-term inflows totaled $122.0 billion, up 3.2% from prior quarter and 61.4% from the prior year quarter • Another consecutive quarter of positive long-term net flows
Slide 4: Third Quarter 2026 Financial Summary
Third Quarter 2026 Financial Summary1 Key metrics (in US$ millions, except AUM in billions and per share data) Q3 2026 Q2 2026 Q3 2025 2 Ending AUM $1,791.6 $1,682.1 $1,611.8 Average AUM2 1,750.0 1,701.6 1,565.2 Adj. revenue 1,816.6 1,752.5 1,593.2 Investment management revenues 1,654.5 1,586.6 1,46
Slide 5: Third Quarter 2026 AUM and Investment Performance
Third Quarter 2026 AUM and Investment Performance 5
Slide 6: Diversified AUM and Adjusted Operating Revenue
Diversified AUM and Adjusted Operating Revenue Diversified by Asset Class, Client Type, and Region Q3 Adjusted Operating Revenue by AUM of $1.79 trillion as of June 30, 2026 Investment Group Quarter ended June 30, 2026 Cash 5% HNW 3% All other Americas 6% 7% Multi-Asset 12% APAC 10% 4% 16%1 5% Alter
Slide 7: Investment Performance
Investment Performance Percentage of AUM Above Peer Median and Benchmark1 As of June 30, 2026 70% 57% 58% 54% 53% 55% 50% 41% 1-year 3-year 5-year 10-year Mutual Funds and ETFs vs. Peers Strategy Composites vs. Benchmark • Mutual Funds and ETFs: 50% or more of mutual funds and ETFs AUM outperformed
Slide 8: AUM and Flows
AUM and Flows1 (In US$ billions, for the three months ended) Total AUM: $1.79 trillion2 118.6 118.2 122.0 3.2 4.1 84.6 28.9 75.6 3.0 3.9 34.6 21.0 19.5 7.8 11.4 28.0 16.9 18.4 (9.3) (11.9) (84.9) (90.6) (96.5) (101.3) (103.6) Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Long-term Long-term Long-term net Ex-We
Slide 9: AUM and Flows
AUM and Flows (In US$ billions, for the three months ended) Equity: $757 billion Fixed Income: $441 billion 65.9 61.1 53.6 33.6 33.5 31.9 30.4 32.0 32.9 28.2 19.8 10.6 2.0 3.5 2.6 3.6 3.5 2.6 (0.6) (2.4) (0.3) (6.9) (4.7) (13.0) (12.6) (32.6) (27.8) (35.9) (32.2) (39.8) (41.3) (41.2) (46.2) (58.3) (
Slide 10: AUM and Flows
AUM and Flows (In US$ billions, for the three months ended) Alternative: $294 billion Multi-Asset: $219 billion 18.4 14.3 13.2 13.9 11.8 12.4 10.8 9.8 9.5 5.6 5.7 12.4 4.4 4.0 4.7 9.1 1.8 6.6 2.5 3.2 (3.1) (2.5) (1.9) (2.7) (4.2) (8.0) (8.0) (9.2) (8.9) (9.2) 1 1 1 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26
Slide 11: Third Quarter 2026 Financial Results
Third Quarter 2026 Financial Results 11
Slide 12: Financial Results
Financial Results1 (Non-GAAP in US$ millions except EFR) Adjusted Operating Revenue and Effective Fee Rate2 Adjusted Operating Expenses 37.5 37.5 37.4 37.8 37.9 $1,342.6 $1,309.9 $1,277.9 $1,307.7 $1,815.0 $1,816.6 $1,215.4 $1,747.2 $1,752.5 $1,593.2 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Jun-25 Sep-25
Slide 13: Financial Results
Financial Results1 (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) US GAAP Jun-25 Sep-252 Dec-25 Mar-26 Jun-263 US GAAP Jun-25 Sep-252 Dec-25 Mar-26 Jun-263 Operating 154.1 85.4 281.0 323.3 215.8 Net Income 92.3 117.6 255.5 268.2 171.5 Income Operating 7.5% 3.6%
Slide 14: Illustrative 2026 Adjusted Operating Expense Bridge
Illustrative 2026 Adjusted Operating Expense Bridge1 (Non-GAAP in US$ billions) Excludes performance fee related expenses $4.85 $0.20 $0.08 $0.11 $5.02 $4.82 $4.65 $0.03 $0.03 $0.07 $0.05 FY24 2 FY25 Cost Expenses Fund- Apera Strategic Sales & Variable Comp & Formulaic FY26 Actual Actual Savings wit
Slide 15: Capital Management
Capital Management Dividends and Share Repurchases Allocation of Cash and Investments1 Senior Notes3 (In US$ millions, for the trailing twelve months ended) (In US$ billions, as of June 30, 2026) (In US$ millions, as of June 30, 2026) $6.5 $514.2 $275.6 $240.3 $276.4 $323.5 $4.4 $850 $550 $0.4 $1.7
Slide 16: Appendix
Appendix FRANKLIN ‘kat’> TEMPLETON 16
Slide 17: AUM and Flows
AUM and Flows1 (In US$ billions) Jun 30, Mar 31, Jun 30, 2026 2026 % Change 2025 % Change Beginning AUM $1,682.1 $1,684.0 (0.1%) $1,540.6 9.2% Long-term inflows 122.0 118.2 3.2% 75.6 61.4% Long-term outflows (103.6) (101.3) 2.3% (84.9) 22.0% Long-term net flows 18.4 16.9 8.9% (9.3) NM Cash managemen
Slide 18: Alternative AUM Roll Forward
Alternative AUM Roll Forward (In US$ billions) Three Months Ended Jun 30, 2026 Private Markets1 Liquid & Other Total Beginning Balance $263.3 $19.5 $282.8 Fundraising2 10.3 1.5 11.8 Outflows (1.3) (1.4) (2.7) Net Flows 9.0 0.1 9.1 Acquisitions - 0.1 0.1 Realizations & distributions3 (2.9) (0.1) (3.0
Slide 19: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Jun-26 Jun-26 Adjusted vs. Adjusted vs. Jun-26 Jun-26 Mar-26 Mar-26 Jun-25 Jun-25 1 Revenues US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment management fees, ex. 1,788.
Slide 20: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Jun-26 Jun-26 Adjusted vs. Adjusted vs. Jun-26 Jun-26 Mar-26 Mar-26 Jun-25 Jun-25 1 Expenses US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Compensation & benefits 958.5 (89.9) 8
Slide 21: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Jun-26 Jun-26 Adjusted Adjusted vs. vs. Other Income (Expense), Jun-26 Jun-26 Mar-26 Mar-26 Jun-25 Jun-25 Net1 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment and other
Slide 22: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended June 30, 2026 Sales, Consolidated Special Unrealized Deferred Tax Expense US GAAP Distribution Acquisition- Regulatory Non-GAAP (in US$ millions except per share data) Investment Termination Investment Comp Plan of Basis and Re
Slide 23: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended March 31, 2026 Consolidated Sales, Special Unrealized Deferred Tax Expense US GAAP Acquisition- Non-GAAP (in US$ millions except per share data) Investment Distribution and Termination Investment Comp Plan of Basis Related Basi
Slide 24: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended June 30, 2025 Consolidated Sales, Special Unrealized Deferred Tax Expense US GAAP Acquisition- Non-GAAP (in US$ millions except per share data) Investment Distribution and Termination Investment Comp Plan of Basis Related Basis
Slide 25: Illustrative 2026 Adjusted Operating Expense Bridge Assumptions
Illustrative 2026 Adjusted Operating Expense Bridge Assumptions • Assumes all expenses not specifically identified in the graph remain unchanged in aggregate. All estimates assume no market changes after June 30, 2026. Excludes performance fee incentive compensation and performance fee related third