Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Q2 FY2009 Earnings Presentation
20 slides from Franklin Resources's earnings presentation, Apr 28, 2009
Slide 1: Franklin Resources, Inc. Second Quarter Results
Internal Use Only / Not for Distribution to the Public Franklin Resources, Inc. Second Quarter Results April 28, 2009 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
2 Forward-Lookin g Statements The financial results in this presentation are preliminary. Statements in this presentation regarding Franklin Resources, Inc. (“Franklin”) and its subsidiaries, which are not historical facts, are "forward-looking statements" within the meaning of the Private Securitie
Slide 3: Highlights of the Quarter
4 Hi g hli g hts of the Quarter Net flows improved from the prior quarter Relative investment performance continues to improve Income before taxes was $178 million despite incurring approximately $86 million of unrealized losses
Slide 4: Assets Under Management
ASSETS UNDER MANAGEMENT
Slide 5: Assets Under Management
6 Assets Under Mana g ement End of Period Simple Monthly Average $391.1 $507.3 $580.2 $591.1 $416.2 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 $396.6 $438.7 $610.2 $602.9 $555.4 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 (in billions, for three months ended)
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Slide 7: Flow Summary
FLOW SUMMARY
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Slide 9: United States and International Flows
10 $14.6 $17.3 $12.4 $8.5 ($20.5) ($18.2) ($16.4) ($14.3) United States and International Flows United States (in billions, for the three months ended) International $13.4 ($16.1) $13.5 $19.3 $18.7 $14.9 ($20.7) ($24.8) ($17.0) ($20.2) 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 $6.4 ($8.7) $1
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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 94% 71% 66% 88% 60% 94% 58% 87% 1 - Year 3 - Year 5 - Year 10 - Year 83% 44% 58% 93% 80% 34% 93% 40% 1 - Year 3 - Year 5 - Year 10 - Year 93% 91% 91% 95% 91% 93% 95% 95% 1 - Year 3 - Year 5 - Year 10 - Year 94% 88% 82%
Slide 13: Investment Performance
14 Investment Performance 87% 93% 38% 73% 29% 88% 22% 73% 1 - Year 3 - Year 5 - Year 10 - Year 100% 99% 99% 100% 99% 88% 100% 88% 1 - Year 3 - Year 5 - Year 10 - Year 82% 27% 25% 94% 78% 23% 94% 30% 1 - Year 3 - Year 5 - Year 10 - Year Templeton Equity Mutual Series Equity Franklin Equity 3/31/2009
Slide 14: Operating Results
OPERATING RESULTS
Slide 15: Quarterly Financial Highlights
16 $110.8 $366.1 $120.9 $403.3 $300.5 Unaudited Quarterly Financial Hi g hli g hts Operating and Net Income Diluted Earnings Per Share $223.3 $268.4 $519.1 $532.2 $412.0 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 $0.48 $0.52 $1.54 $1.71 $1.28 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09
Slide 16: Operating Revenues
17 Unaudited 31-Mar-09 31-Dec-08 Mar-09 vs. Dec-08 30-Sep-08 30-Jun-08 31-Mar-08 Mar-09 vs. Mar-08 (8%) (40%) 0% (39%) 0% (9%) (5%) (53%) 232% NM Total Operating Revenues 912.3 $ 969.3 $ (6%) 1,321.5 $ 1,521.6 $ 1,503.7 $ (39%) Operatin g Revenues (in millions, for the three months ended) Investment
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Slide 20: Operating Margin and Capital Management
20 99% 44% 74% 34% 62% Unaudited 13% 11% 15% 40% 44% 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 112% 55% 89% 74% 106% Operating Margin Operatin g Mar g in and Capital Mana g ement 34.5% 35.0% 31.2% 27.7% 24.5% 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 Stock Repurchase Activity 3.6 2.4