Slide 1: Jupiter Fund Management plc Full Year Results
Jupiter Fund Management plc Full Year Results: 27 February 2014
Slide 2: Forward-looking statements
Forward-looking statements 2 This presentation may contain certain “forward-looking statements” with respect to certain plans of Jupiter Fund Management plc (Jupiter) and its current goals and expectations relating to its future financial condition, performance, results, strategy and objectives. S
Slide 3: Highlights, Performance and People
Highlights, Performance and People
Slide 4: Delivering value to clients and shareholders
Delivering value to clients and shareholders 4 Investment outperformance* Net mutual fund inflows 73% +£1.2bn Dividends to shareholders +43% Net cash balance sheet High margin operating model £160m 53% ⃰ Mutual fund, segregated mandate and investment trust AUM versus median / benchmark over 3 year
Slide 5: Generating value for our clients
Generating value for our clients 5 Three year mutual fund investment performance Distribution channels focused on three year performance numbers 9% 28% Strong long-term track record maintained 16% 20% 22% Excellent institutional performance with 25% 99% of segregated mandate and 100% 39% o
Slide 6: Talent management: a continual process
Talent management: a continual process 6 Promoting Launching from the bench appropriate products Across Managing under investment, Hiring new talent performance distribution and support Attractive culture to Succession planning minimise leavers
Slide 7: Financials
™ Financials JUPITER
Slide 8: Highlights
Highlights 8 Measure 2012 2013 Change Net revenues £244.5m £288.5m 18% EBITDA £124.2m £151.5m 22% EBITDA margin 51% 53% Underlying EPS 19.0p 25.2p 33% Net cash £69m £160m £91m Total dividend 8.8p 12.6p 43%
Slide 9: Revenues
Revenues 9 Net revenue Net management fees (£ million) (£ million) 2012 2013 % +/- Net management fees 225.7 267.1 +18% 267 Net initial charge 14.3 15.7 Performance fees 4.5 5.7 226 226 Net revenue 244.5 288.5 +18% 205 Net management fee margin 2012 2013 % +/- Average FTSE 5742 6429 +12% Avera
Slide 10: Net management fee margins
Net management fee margins 10 Key drivers: business mix Progression 14% bps 2010 2011 2012 2013 12% 12% Net management fee margin 96.9 95.0 93.3 90.5 10% 10% Guidance at Listing was for a reduction of 2 to 3bps 8% per annum 6% Actual average reduction has been 2.1bps per annum 6% 4% 3% Key d
Slide 11: Administrative expenses (fixed)
Administrative expenses (fixed) 11 Fixed costs Fixed costs (£ million) (£ million) 2012 2013 % +/- 87 Fixed staff costs 39.5 43.0 81 77 75 Other expenses 41.5 43.9 35 Fixed costs 81.0 86.9 +7% 33 33 29 Continued investment in our talent, platform and distribution capabilities Exercising cost
Slide 12: Administrative expenses (variable)
Administrative expenses (variable) 12 Variable costs Variable costs (£ million) and compensation ratio1 (£ million) 2012 2013 25 25 Cash bonus 30.0 33.9 22 21 Deferred bonus 5.4 8.5 17 LTIP, SAYE and SIP 4.5 8.6 10 5 Pre-IPO deferral scheme 0.2 - 2 Variable costs 40.1 51.0 34 31 30 Variable comp
Slide 13: Commercial alpha
Commercial alpha 13 Scalable operating model Attractive profit growth and margins Average AUM (£ billion) EBITDA* (£ million) EBITDA margin (per cent) Net mgt fee margin (bps) Fixed costs vs average AUM (bps) 54 54 29.5 53 97 51 90 24.2 152 23.8 135 125 124 21.1 35 29 2010 2011 2012 2013 2010 2011
Slide 14: Underlying EPS
Underlying EPS1 14 Calculation Progression (p) £ million 2012 2013 % +/- Statutory profit before tax 73.6 114.1 CAGR 25.2 13% p.a. Amortisation of acquired contracts and brand 38.7 38.7 Charge for options over pre-Listing shares 7.3 4.2 19.1 19.0 0.7 (6.7) 17.6 P&L movement in value of AFS2 asse
Slide 15: Dividends
Dividends 15 Progression (p) Highlights Interim Final 2012 2013 Total dividend 8.8p 12.6p +43% Final dividend 6.3p 9.1p +44% Payout ratio 46% 50% 9.1 Total dividend increased by 43 per cent. to 12.6 pence 6.3 5.3 Reflects healthy results and our improved balance sheet 4.7 3.5 2.5 2.5 2010 2011
Slide 16: Sustainable balance sheet
Sustainable balance sheet 16 Progression (£ million) Highlights Gross cash Gross bank loan Net (debt) / cash Dec-12 Dec-13 Net cash £69m £160m £91m 220 Bank loan outstanding £78m £11m £67m 171 150 149 Gross debt fully repaid in February 2014; revolver remains in place but undrawn (11) Traded o
Slide 17: Sharing the rewards of growth
Sharing the rewards of growth 17 2013 outcome Available profit to stakeholders Net revenues less fixed costs 5% Staff incentives Variable compensation ratio 25% Corporation tax 26% Tax paid during the year Paid out to shareholders Dividend payout ratio of 50% Available profit Paid out to debtholde
Slide 18: Distribution & Strategy
!) Distribution & Strategy JUPITER
Slide 19: Strategy
Strategy 19 Deliver outperformance after fees to our clients Sell this expertise through products suited to our distribution strengths Deliver attractive returns to shareholders
Slide 20: Jupiter net flows
Jupiter net flows 20 Movement in AUM (£bn) Highlights 32 31.7 AUM up 21% to £31.7bn Healthy net mutual fund inflows of £1.2bn 4.3 Good contribution from fixed income and top-performing equity funds 1.2 0.1 ‘Changing of the guard’ successfully navigated 27 (0.1) (0.0) 26.3 UK momentum inc
Slide 21: Implementing our growth strategy
Implementing our growth strategy 21 Focused approach to expansion Follow existing client relationships Manage simultaneous growth options Extension of strengths Efficient increase in scale Scalable operating platform Disciplined Chosen investment markets for growth
Slide 22: Chosen markets
Chosen markets 22 UK retail assets under management (£ billion) International: assets under management (£ billion) Equities Fixed Income Mixed Asset Property Others Equities Fixed Income Mixed Asset Property Others 2140 CAGR 14% p.a. 1827 1564 1466 1162 997 CAGR 9% p.a. 800 765 657 584 574 464 480
Slide 23: UK distribution
UK distribution 23 Jupiter’s unit trust AUM since the peak of the FTSE Approach UK market has good long-term growth drivers 25.0 High quality UK distribution franchise built around a long-term performance culture 20.0 CAGR 13% p.a. Scale player 15.0 Jupiter’s UK strategy: Deliver investm
Slide 24: International distribution
International distribution 24 Jupiter’s SICAV AUM (£ billion) Approach AUM* (LHS) % age of overall mutual fund assets (RHS) Highlights of the year: 3.5 12% 60% AUM growth in 2013 3.0 Key hires made in Hong Kong, Germany, Sweden and 10% London 2.5 Increasingly important contributor to Group
Slide 25: Strategic priorities
Strategic priorities 25 Develop and Deliver Extend Invest in the Increase cash enhance our outperformance distribution platform to returns talent after fees capabilities facilitate growth Deliver value to clients and shareholders
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