Slide 1: Delivering Growth: 2017 Full Year Results
DELIVERING GROWTH 2017 Full Year Results
Slide 2: An active asset manager
2017 FULL YEAR RESULTS 1 An active asset manager Delivering growth through investment outperformance Client focus: delivering value through investment performance and transparency Delivered outperformance after fees Continued competitive advantage Performance Improved 3 year investment perfo
Slide 3: Financial highlights
2017 FULL YEAR RESULTS 2 Financial highlights Strong financial performance alongside successful asset gathering Measure 2016 2017 Change Net management fees £330.2m £392.4m +19% Net revenue £351.4m £409.5m +17% Net management fees margin 87bps 85bps Underlying profit before tax* £168.4m £193.8m +15%
Slide 4: Revenues
2017 FULL YEAR RESULTS 3 Revenues 19% growth in net management fees Net revenue Net revenue (£ million) £ million 2016 2017 % +/- Net management fees Net initial charges Performance fees 410 Net management fees 330.2 392.4 +19% 15 Net initial charges 15.0 15.2 351 Of which box profits 12.8 13.6 329
Slide 5: Net management fee margins
2017 FULL YEAR RESULTS 4 Net management fee margins Key driver remains growth of fixed income Business mix bps 2013 2014 2015 2016 2017 Margin* 90.4 88.3 87.5 87.3 85.0 ■ Net management fee margin is in line with guidance ■ Decrease is as a result of continued positive momentum in a changing busines
Slide 6: Operating expenses
2017 FULL YEAR RESULTS 5 Operating expenses Investing alongside growth Operating expenses Operating expenses (£ million) and % of net management fees £ million 2016 2017 % +/- 35% Fixed staff costs 48.3 54.3 +12% 35% 33% 34% 33% 32% 30% Other expenses 67.1 77.8 +16% Operating expenses 115.4 132.1 +1
Slide 7: Operating expenses
2017 FULL YEAR RESULTS 6 Operating expenses Progression driven by business volumes and investment; cost discipline focus Operating expenses progression from 2016 to 2017 (£ million) 140.0 130.0 3.2 2.7 2.2 5.0 120.0 3.7 110.0 Investment = £9.9m 132.1 100.0 115.4 90.0 80.0 2016 Volume driven Investme
Slide 8: Variable staff costs
2017 FULL YEAR RESULTS 7 Variable staff costs Compensation ratios remain within guidance Variable staff costs Variable staff costs (£ million) and comp ratio* £ million 2016 2017 % +/- 29.7 Cash bonus 42.4 41.6 28.4 28.2 25.3 25.6 Other variable compensation** 24.2 40.9 Variable staff costs 66.6 82.
Slide 9: Earnings
2017 FULL YEAR RESULTS 8 Earnings Increased revenues driving strong growth in earnings Growth in earnings Underlying PBT* (£ million) Underlying EPS (p) 34.2 ■ Asset growth and positive business momentum has driven increase in revenues 194 ■ Maintaining focus on an efficient operating model allows u
Slide 10: Distribution of Earnings
2017 FULL YEAR RESULTS 9 Distribution of Earnings Maintaining an appropriate balance 20% increase in total dividends Split of available profit* Return of private pence client proceeds per share Retained, 3.0% Special 15.5p Final 15.5 Staff Special Interim dividends, incentives, 4.9 29.7% 12.5 25.6%
Slide 11: Resilient balance sheet
2017 FULL YEAR RESULTS 10 Resilient balance sheet Disciplined deployment of our balance sheet Regulatory capital (£ million) Seed investment - at cost (£ million) £ million 2016* 2017 % +/- Ordinary shareholder funds 610 641 31 88 Less: goodwill and illiquid assets** (368) (377) 70 Tangible capital
Slide 12: Our reaffirmed active asset management strategy
2017 FULL YEAR RESULTS 11 Our reaffirmed active asset management strategy 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 13: Highlights of development in Key Performance Indicators
2017 FULL YEAR RESULTS 12 Highlights of development in Key Performance Indicators Delivering growth through investment excellence Investment Net Net Underlying Performance Sales Management Earnings per Fees Share 3 year mutual fund outperformance* Up 6% Up £4.5bn Up 19% Up 16% to 81% to £5.5bn to £3
Slide 14: Competitive advantage
2017 FULL YEAR RESULTS 13 Competitive advantage Delivering performance after fees for our clients is at the core of what we do Three year mutual fund performance Commentary Long-term track record maintained AUM weighted 6% 81% of AUM in mutual funds above median over three years (YE 2016: 75%*)
Slide 15: We continue to grow scale
2017 FULL YEAR RESULTS 14 We continue to grow scale 13 funds over £1bn representing over 70% of AUM AUM at AUM at AUM at 4th quartile 3rd quartile 2nd quartile 1st quartile Dec 2016 Jun 2017 Dec 2017 Dynamic Bond1 £6,209m £9,090m £9,710m European £3,780m £4,306m £4,948m Strategic Bond £3,407m £3,708
Slide 16: Diversification of our product range
2017 FULL YEAR RESULTS 15 Diversification of our product range Growth in fixed income and European equities has driven more diversified growth overall Over the last five years evolution and Split of AUM by investment strategy diversification are constant themes as we £50.2bn continually adapt to i
Slide 17: Growth in AUM since 2012
2017 FULL YEAR RESULTS 16 Growth in AUM since 2012 Benefits of our focus on delivering outperformance for our clients Movement in AUM (£ billion) AUM up 91% to £50.2bn, with healthy underlying organic 50 flow growth 14.9 40 0.1 Mutual fund net inflows of (0.1) (1.6) £10.6bn across a range of 10.
Slide 18: Benefits of a consistent business model
2017 FULL YEAR RESULTS 17 Benefits of a consistent business model Persistent organic flow growth Cumulative net mutual fund flows (£bn) Focused mutual fund provider, with a track record of 11.0 generating consistent net 10.0 inflows across the cycle 9.0 £10.6bn cumulative mutual 8.0 fund inflows
Slide 19: Diversification by client and geography
2017 FULL YEAR RESULTS 18 Diversification by client and geography Track record of flow growth in new markets and resilience in home market Core Markets UK Continental Europe APAC AUM 2012: £18.5bn AUM 2012: £3.5bn AUM 2012: £0.12bn AUM 2017: £36.6bn AUM 2017: £9.7bn AUM 2017: £2.8bn Addressable mark
Slide 20: Maintaining the high performance culture
2017 FULL YEAR RESULTS 19 Maintaining the high performance culture Our approach is our competitive advantage Unconstrained and conviction led approach to active investing Individual autonomy and accountability People Flexible and light team structure Independence of thought: no house view Pe
Slide 21: Continued investment in our fund management capability
2017 FULL YEAR RESULTS 20 Continued investment in our fund management capability We are developing our existing and new fund management capabilities to drive further growth We continue to diversify into Managing our capabilities new product areas In 2017 we have launched a Sustain success Active
Slide 22: In summary for 2017
2017 FULL YEAR RESULTS 21 In summary for 2017 Continued momentum across the business Strong performance across our key performance indicators Successful diversification by product, client type and geography Performance Disciplined approach to our cost base with delivery on critical investments
Slide 23: Looking more broadly than just 2017
2017 FULL YEAR RESULTS 22 Looking more broadly than just 2017 Delivering growth through investment excellence Track record of delivering investment outperformance after all fees and earnings growth to shareholders Culture of accountability, high performance and diversity Continued investment i
Slide 24: Q&A
2017 FULL YEAR RESULTS 23 Q&A JUPITERAM.COM
Slide 25: Forward-looking statements
Forward-looking statements This presentation may contain certain “forward-looking the impact of changes in capital, solvency or accounting statements” with respect to certain plans of Jupiter Fund standards, and tax and other legislation and regulations in Management plc (Jupiter) and its current go