Slide 1: Franklin Resources, Inc. Fourth Quarter Results
Internal Use Only / Not for Distribution to the Public Franklin Resources, Inc. Fourth Quarter Results October 27, 2009 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
2 Forward-Looking 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 Securities
Slide 3: Highlights of the Quarter & Fiscal Year
4 Highlights of the Quarter & Fiscal Year Relative investment performance remains strong, across the board Quarterly net new flows exceed $12B for the second time in company history Cost management efforts over the last 12 months preserved profitability as a 24% decrease in expenses largely offset a
Slide 4: Assets Under Management
ASSETS UNDER MANAGEMENT
Slide 5: Assets Under Management
6 Assets Under Management End of Period Simple Monthly Average $523.4 $391.1 $416.2 $507.3 $451.2 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 $488.3 $428.0 $555.4 $438.7 $396.6 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 (in billions, for the three months ended)
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Slide 7: Flow Summary
FLOW SUMMARY
Slide 8: Long-term sales and redemptions
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Slide 9: United States and International Flows
10 United States and International Flows United States (in billions, for the three months ended) International $21.5 ($13.4) $18.1 $14.9 $13.5 $13.4 ($20.2) ($12.7) ($24.8) ($16.1) 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 $13.4 ($9.9) $6.4 $14.3 $23.6 $9.8 ($8.7) ($20.3) ($9.7) ($26.4) 30-S
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Slide 11: Investment Performance
INVESTMENT PERFORMANCE
Slide 12: Long-Term Investment Performance
13 % of U.S. Long-Term Assets in Top Two Lipper Quartiles Investment Performance 90% 85% 85% 85% 61% 95% 84% 89% 1 - Year 3 - Year 5 - Year 10 - Year 83% 86% 86% 90% 83% 86% 95% 61% 1 - Year 3 - Year 5 - Year 10 - Year 9/30/2009 6/30/2009 Franklin Templeton Franklin Templeton Fixed-Income Franklin T
Slide 13: Investment Performance – Detail View
14 98% 88% 99% 99% 99% 98% 99% 99% 1 - Year 3 - Year 5 - Year 10 - Year 87% 85% 78% 76% 29% 97% 81% 77% 1 - Year 3 - Year 5 - Year 10 - Year Investment Performance – Detail View Lipper rankings for Franklin Templeton U.S.-registered long-term mutual funds are based on Class A shares. Franklin Temple
Slide 14: Operating Results
OPERATING RESULTS
Slide 15: Quarterly Financial Highlights
16 $367.4 $300.5 $297.7 $120.9 $110.8 Unaudited Quarterly Financial Highlights Operating and Net Income Diluted Earnings Per Share $384.7 $326.2 $412.0 $268.4 $223.3 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 $1.60 $1.29 $1.28 $0.52 $0.48 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 (in
Slide 16: Operating Revenues
17 Unaudited 30-Sep-09 30-Jun-09 Sep-09 vs. Jun-09 31-Mar-09 31-Dec-08 30-Sep-08 Sep-09 vs. Sep-08 16% (12%) 19% 2% 0% (3%) (45%) 7% (14%) 238% Total Operating Revenues 1,238.9 $ 1,073.6 $ 15% 912.3 $ 969.3 $ 1,321.5 $ (6%) Operating Revenues (in millions, for the three months ended) Investment mana
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Slide 20: Operating Margin and Capital Management
20 Unaudited 74% 34% 62% 37% 43% Operating Margin Operating Margin and Capital Management 31.2% 27.7% 24.5% 30.4% 31.1% 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 Stock Repurchase Activity Dividend and repurchase payout are calculated as amount of dividend declared divided by net income and a