Schroder Asian Total Return Investment Company plc · LSE:ATR
Schroder Asian Total Return Investment — Janus Henderson Global Investors — Merger or Acquisition (October 2016)
20 slides from Schroder Asian Total Return Investment's merger presentation, Oct 3, 2016
Slide 1: Janus Henderson Global Investors
Janus Henderson Global Investors Janus Capital Group Inc. and Henderson Group plc Recommended Merger of Equals Monday 3 October 2016 Andrew Formica Chief Executive, Henderson Group plc Dick Weil Chief Executive Officer, Janus Capital Group Inc. Roger Thompson Chief Financial Officer, Henderson Group
Slide 2: Disclaimer
Disclaimer This document comprises written materials for a presentation concerning the proposed combination of Henderson Group plc (“Henderson”) and Janus Group Capital, Inc. (“Janus”), expected to be structured as an offer by Henderson for all of Janus’ issued and to be issued share capital. This p
Slide 3: Executive summary
Executive summary • Today, Janus Capital Group and Henderson Group are announcing the recommended merger of equals with two highly complementary businesses that have similar cultures and a shared focus on delivering excellent investment performance and service to clients • The transaction accelerate
Slide 4: Compelling merger of equals
Compelling merger of equals Highly complementary businesses Relevant to future client needs • Client-centric, collaborative cultures • Continued demand for high performance, • Well matched investment capabilities, active investment management focused on active management • Enhanced distribution reac
Slide 5: Transaction overview
Transaction overview Company • Combined entity to be known as Janus Henderson Global Investors, listed on NYSE and ASX structure and • Andrew Formica and Dick Weil to lead the company as Co-CEOs management • Board of Directors will be comprised of equal members of Janus and Henderson directors • Rec
Slide 6: Transaction rationale
Transaction rationale Client benefits Structural drivers • Increased depth, breadth and connectivity of • Rising industry-wide costs necessitate investment teams to deliver better outcomes economies of scale and financial flexibility for clients • Distribution networks and product • Greater choice o
Slide 7: Henderson’s story to date
Henderson’s story to date Our vision 2013 – 2016: Growth and Globalisation A trusted global asset manager focused on delivering £100.0bn excellent performance and service to our clients 32 mths Our philosophy 32 mths to Aug 16: Active fund management with our clients’ needs £63.7bn to Aug 16: 3% pa
Slide 8: Janus’ story to date
Janus’ story to date Our vision Historical AUM diversification by investment Be a trusted partner to our clients by consistently delivering discipline global investment excellence 2009 Current1 US$160bn AUM US$195bn AUM Our philosophy Work together to deliver strong, consistent, long-term 5% 2% Fund
Slide 9: Enhanced scale and market position
Enhanced scale and market position AUM by distribution channel As at 30 June 2016 (US$bn) 127 322 50 118 Combined firm will have significant 77 presence in the largest global markets 195 • Top 50 Global Asset Manager 68 • Top 20 U.S. Mutual Fund company 204 • Top 10 U.K. Retail company 127 • US$16bn
Slide 10: Complementary investment capabilities
Complementary investment capabilities AUM by investment discipline As at 30 June 2016 (US$bn) Janus¹ Henderson Janus Henderson¹ US$195bn US$127bn 2 US$322bn 2% U.S. Equity² 8%1% 10% 5% 4% Global Equities 6% 15% 37% European Equities 27% 20% Fixed Income 23% Alternatives 58% 10% 29% Multi-Asset 20% E
Slide 11: Combined global distribution strength
Combined global distribution strength AUM by geography As at 30 June 2016 (US$bn) North America 128 UK and Continental Europe Asia 12 69 16 3 116 40 32 9 7 66 7 2 16 25 7 33 U.K. Continental Asia ex. Japan U.S. U.S. Europe Japan Retail Institutional Improved geographic diversification Australia 11%
Slide 12: Strong, experienced executive team
Strong, experienced executive team J H Richard Weil Andrew Formica Co-CEO Co-CEO H J Phil Wagstaff Enrique Chang Global Head of Distribution Global Chief Investment Officer H J Rob Adams Bruce Koepfgen Head of Asia Pacific Head of North America H J Jennifer McPeek Roger Thompson Chief Operating and
Slide 13: Value creation
Value creation • At least US$110m annual run rate net cost synergies¹, weighted to 12 months following completion and expected to be fully realised 3 years post completion • Cost synergies largely expected from increased economies of scale, consolidation of overlapping functions and non-compensation
Slide 14: Improved financial strength and flexibility
Improved financial strength and flexibility 2 1 Janus Henderson³ Revenue US$1,076m US$1,155m US$2,231m Underlying Annual run rate net US$361m US$337m US$698m cost synergies of EBITDA $110m represents Intention for a 16% of combined underlying EBITDA Dividend Payout progressive dividend 43% 59% Ratio
Slide 15: Aligned vision of success
Aligned vision of success Become the leading, trusted global active investment manager 1. A clear focus on our clients 2. Commitment to delivering superior risk adjusted returns 3. Passionate about best in class service to our clients 4. Fostering the best employee talent in the industry 5. A deeply
Slide 16: Q&A
Q&A og JANUS CAR Tae Henderson
Slide 17: Appendix
Appendix Group Henderson
Slide 18: Financial overview
Financial overview Henderson – Adjusted IFRS¹ Janus – U.S. GAAP US$m FY15 1H16 US$m FY15 1H16 Total revenue² 1,155 511 Total revenue 1,076 500 Distribution expenses (236) (112) Distribution expenses (141) (66) Other expenses³ (686) (300) Other expenses (613) (304) Total operating expenses (922) (412
Slide 19: Indicative timetable to completion
Indicative timetable to completion Transaction documentation to be based on FY16 results Key activities Dates Transaction announcement 3 October 2016 Janus 3Q results 25 October 2016 Henderson 3Q trading statement 27 October 2016 Henderson FY16 results 9 February 2017 Expected Janus FY16 results 25
Slide 20: Contacts
Contacts Investor enquiries: Henderson Group plc Investor enquiries: Janus Capital Group Inc. Miriam McKay John Groneman Head of Investor Relations Head of Investor Relations +44 (0) 20 7818 2106 +1 303-336-7466 miriam.mckay@henderson.com john.groneman@janus.com or investor.relations@henderson.com i
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