Liontrust Asset Management : Full Year Results presentation

About this update from Liontrust Asset Management Plc

Liontrust Asset Management PLC Full Year Results Presentation 25 June 2025 Order Liontrust's Purpose and Values Financial headlines Business backdrop Market outlook Building for growth Distribution Brand Investment offering Platform Financial Results Capital Allocation Policy Outlook OUR PURPOSE To help clients enjoy a better financial future through the power of active management and distinct investment processes COURAGE Liontrust does not follow the herd and has the courage to have independence of thought The business has the courage to do the right thing, make decisions and be nimble Investment teams have the courage of their convictions through their differentiated and rigorous investment processes. Liontrust has the courage to take an active and engaged approach to investing, clients, staff and society POWER The power of investment processes are key to long-term performance and effective risk control Liontrust believes in the power of promoting diversity and inclusion across the business, bringing diverse and inclusive thinking and approaches to our purpose We seek to empower our staff to fulfil their potential and foster an environment in which everyone is engaged and encouraged to actively participate in the business PRIDE We take pride in seeking to act in the best interests of clients and delivering good customer outcomes at all times Our staff are responsible for upholding the highest standards of integrity, taking pride in being trustworthy and transparent while making decisions with a clear sense of fairness Everyone takes pride in being responsible for supporting each other, collaborating, treating each other with dignity and respect, and being open-minded to new ideas, challenge and debate AuMA £22.6bn As at 31 March 2025 Net flows £(4.9)bn 12 months to 31 March 2025 Adjusted profit before tax £48.3m 12 months to 31 March 2025 Full Year Dividend maintained 72.0p Second interim dividend of 50p payable on 8 August 2025 Business Transformation Programme £6.0m Annualised costs savings achieved New Capital Allocation Policy Minimum 50% payout ratio of adjusted diluted EPS and returning incremental excess capital to shareholders via share buybacks Source: Liontrust Asset Management, March 2025. This slide includes Alternative Performance Measures (APMs) - see Appendix 6 for the definition of these APMs. 2021 Continued growth in AuMA from £16.1bn to £30.9bn Reinforcement of Liontrust's brand and investment philosophy 2022 Market volatility and macroeconomic uncertainty, emphasis on investment discipline Investment in infrastructure and focus on client engagement and retention Emphasis on maintaining investment discipline 2023 Risk-off and investor caution Investment in digital marketing, commitment to improving the client experience and operational resilience 2024 Confidence in teams despite headwinds Expansion into global equities and positioning for growth with scalable infrastructure Source: Liontrust, June 2025 US Equity and GDP shares versus the World 80% World Equities have returned 13% per annum over the last 10 years providing an easy passive investing environment. The US equity market has driven much of that taking US share of the world index up from 47% to 68%. At the same time the US share of global GDP has remained constant. 70% 60% 50% 40% 30% 20% 10% 0% 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 US weight in index (%) US share of global GDP Source: Bloomberg, June 2025. US Equity weight is share of US equities in the MSCI Global ACWI Index. Weight of largest 7 companies in the S&P 500 29% 35% Performance of the M7 has driven concentration to levels not seen over the last 100 years. Passive inflows have further driven that concentration. The narrow focus of investment comes at the expense of many tens of thousands of other equities globally. 30% 25% 20% 15% 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 10% Source: BofA US Equity & Quant Strategy, Factset, 31.12.24 Market backdrop | US equities outperformed the MSCI World index in 12 of the last 15 years MSCI AC World Index performance 20% Has the US outperformed for long enough? If so, don't be Passive. In the years where US equities underperformed, often the US$ was weaker. 15% 10% 5% 0% -5% -10% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 -15% US index weight contribution (%) US alpha contribution (%) Source: Bloomberg, June 2025. US index weight contribution is calculated as the absolute percentage point contribution to the MSCI Global ACWI Index. The US Alpha contribution is calculated as the excess percentage points in index performance derived from US equities over the expected contribution if US equities had moved in line with the index. Market backdrop | The correlation between US equity outperformance and the US$ is clear The US$ has been a good indicator of US equity out and under performance. Geo-political events together with ballooning public debt in the US make the US$ a less certain bet. In a weaker US$ world, non-US equities will likely do better, again supporting active management. Source: Bloomberg, Crescat Capital LLC, 27.11.24 Percentile since 1930 Goldman Sachs forecast for 10-year CAGR = 3% Market concentration Profitability Valuation Interest rates Fundamentals 99% 46% 33% 99% 97% £3,395 £1,345 £1,000 £1,000 £345 £2,395 Concentration risk, profit margins and valuations are at multi decade highs in the US market. US$ weakness may be more pervasive. GS expected US equity market returns to be lower in the next 10 years. However, there is still significant alpha to be generated in equities overlooked by the rush to passive and concentration. Active management as well as alternative equity strategies are set to move back into favour. 13% CAGR 3% CAGR Source: Goldman Sachs Global Investment Research, December 2024. GDP contraction frequency represents the percentage of quarters with a contraction in real GDP during the next 10 years (40 quarters). Market concentration is measured as the ratio between the market cap of the largest stock in the market relative to the market cap of the 75th percentile stock. CAGR: Compound annual growth rate Investment case Source: Liontrust, June 2025 Building a distribution plan based on a combination of business and market intelligence Execute the plan via a data-driven approach Client interaction to be guided by robust analytics that pinpoints the firms and individuals most relevant to our product offerings. This maximises our coverage of the respective marketplaces The team collectively prides itself on three pillars: Relentless activity - we are in the market every day, creating touch-points that drive inflows and retention of assets Precise coverage - we focus on the most relevant firms and, crucially, the key decision-makers within them Deep product knowledge - we translate sophisticated strategies into clear, actionable ideas for clients By executing flawlessly on the above, we deliver for clients and prospects UK sales team Team Target: 960 1,082 Firm level - 85% of these meetings were with our key top tier firms Individual level - 70% were with a tier 1 or 2 client 47 client events and webinars; 682 clients attended these events and webinars Investment conference at the Science Museum with over 300 clients Sustainable Conference Economic Advantage conference at the Mansion House Investment case Distribution Source: Liontrust, June 2025 Past performance does not predict future returns Brand | Distinctive and high profile Liontrust ranks 2 nd according to professional intermediaries for UK equities and Sustainable Investments and 3 rd for European equities and Multi-Asset solutions (Source: Research in Finance, February 2025) Liontrust is the 4th best for communications according to UK intermediaries (Source: Research in Finance, February 2025) Liontrust is second highest asset manager for unprompted advertising recall According to retail investors (Source: Research in Finance, February 2025) Liontrust is perceived as the best manager for UK for Sustainable Investment among retail investors (Source: Research in Finance, February 2025) More than half a million views of Liontrust videos to February 2025 (Source: Liontrust) Liontrust has the 5th highest brand familiarity according to professional intermediaries (Source: Research in Finance, February 2025) Source: All use of company logos, images or trademarks in this presentation are for reference purposes only Investment case Distribution Brand Source: Liontrust, June 2025 SUSTAINABLE INVESTMENT ECONOMIC ADVANTAGE MULTI ASSET GLOBAL INNOVATION £8,137 £4,255 £3,829 £770 UK Retail 7,602 UK Retail 3,807 UK Retail 3,664 UK Retail 767 Institutional 309 Institutional 384 Alternative 73 International 3 International 226 International 64 International 92 CASHFLOW SOLUTION GLOBAL FUNDAMENTAL GLOBAL EQUITIES £2,770 £1,767 £1,062 UK Retail 1,813 UK Retail 435 UK Retail 1,041 Institutional 517 Institutional 206 International 21 International 192 Investment Trusts 1,126 Alternative 248 Source: Liontrust Asset Management PLC, March 31, 2025. Data as at 31.03.25. AuMA: Assets under management and advice. Figures subject to rounding Mark Hawtin Head of Global Equities David Goodman Investment Manager 37 years Kevin Kruczynski Investment Manager 24 years Pieran Maru Investment Manager 7 years Ewan Thompson Fund Manager 18 years Thomas Smith Fund Manager 15 years Vanessa Sinclair Fund Manager 24 years Team 40 years' experience Global Change Distinctive investment process Our process Separate What to buy and When to buy Intrinsic valuation QQT - Quantitative, Qualitative, Technical Multiple face to face company meetings Our focus Identifying companies on the right (and wrong) side of change Active risk management Process discipline Our beliefs In today's world, change is exponential Markets dislocate from fundamentals Fundamentals always reassert Fund Management is both art and science Experience in good and bad markets is critical Global Change investment process Team AUM: £1.0bn (31 Mar 2025) Experience and depth of talent Range of 10 funds Liontrust Latin America Fund 1 st quartile over 1 year Liontrust India Fund 1 st quartile over 5 years Liontrust Global Alpha Fund 1 st quartile since inception Liontrust Balanced Fund 1 st quartile over 10, 15 years and since inception Source: Liontrust, FE Analytics, as at 31.03.25. Liontrust Latin America Fund versus IA Latin America comparator benchmark. Liontrust India Fund versus IA India / Indian Subcontinent comparator benchmark. Liontrust Global Alpha Fund versus IA Global comparator benchmark. Liontrust Balanced Fund versus IA Mixed Investment 40-85% Shares comparator benchmark. Quartiles and rankings as at 31.03.25, generated on 03.04.25 Past performance does not predict future returns Cashflow Solution 500% 400% 300% 200% 100% 0% 2006 -100% 432.8% Liontrust European Dynamic Fund 212.4% 202.0% 200% 150% 100% 50% 0% Apr-14 -50% Liontrust GF European Strategic Equity Fund 141.6% 109.8% 19.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Feb-15 Dec-15 Oct-16 Aug-17 Jun-18 Apr-19 Feb-20 Dec-20 Oct-21 Aug-22 Jul-23 May-24 Mar-25 Liontrust European Dynamic I Inc MSCI Europe ex UK IA Europe Excluding UK Liontrust GF European Strategic Equity A4 Acc EUR MSCI Europe HFRX Equity Hedge EUR Cashflow Solution investment process Managed by James Inglis-Jones and Samantha Gleave Team AUMA of £2.8bn (31 Mar 25) Fund Manager of the Year Awards Winner; 2022, 2023, 2024 European Dynamic: 1 st quartile over 5, 10, 15 years and since inception FY25 inflows of £650m Growth of Cashflow Solution Team AuMA (£m) 3,000 2,500 2,000 1,500 1,000 500 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Sep-24 Dec-24 Mar-25 0 Source: FE Analytics, Liontrust European Dynamic Fund, total return, (net of fees, income reinvested), primary share class (I Inc GBP) versus MSCI Europe ex UK and IA Europe ex UK comparator benchmarks, 15.11.06 to 31.03.25; Liontrust GF European Strategic Equity, total return, (net of fees, income reinvested), primary share class (A4 Acc EUR) versus MSCI Europe and HFRX Equity Hedge EUR comparator benchmarks, 25.04.14 to 31.03.25. AuMA (assets under management and advice), source Liontrust Asset Management PLC, 31.03.25 CFROC (%) 15.0 6.7 Fund weighted average Market average CFROA (%) 31.2 7.9 Fund weighted average Market average Gross margin (%) 47.8 32.5 Fund weighted average Market average Operating margin (%) 20.5 13.5 Fund weighted average Market average Net debt/EBITDA 1.4 0.4 Fund weighted average Market average Equilibrium growth rate (FCF growth) (%) 1 5.4 1.5 Fund weighted average Market average Source: Canaccord Genuity, 04.06.25. Liontrust Special Situations Fund statistics are a weighted average of holdings in the portfolio. 1. Equilibrium Growth is the real rate of capital growth which a company can generate from internally generated free cash flow, calculated after paying out interest, tax, dividends, buybacks and maintenance capex, data as at 20.05.25 Advisory committee Tony Greenham is the ESG Director at the British Business Bank, the UK's economic development bank providing finance for start-ups, scale-ups and small and medium sized businesses to transition to a net zero economy Ivana Gazibara is a futures and systems change expert with more than 15 years of experience in sustainability strategy and innovation Mark Stevenson is a strategic advisor to governments, investors, NGOs and corporates and co-founder of Carbon Removals company CUR8 Nicola Walton is a writer and broadcaster - the author of How to Report Economic News and the host of It's the Economy, the podcast mini-series for Intelligence Squared Dr Mathew Hampshire-Waugh is the author of best-selling book CLIMATE CHANGE and the road to NET-ZERO, and the founder of Net-Zero Consulting Services MA in Physics from Oxford University MSc in Energy & Environmental Engineering from Sussex University PhD in Environmental Economics from the University of Surrey BSc in Economics from the University of Newcastle, Australia Graduate Diploma in Applied Finance & Investment from Securities Institute of Australia CFA Charterholder MA in Economics and Mathematics from the University of Edinburgh CFA Charterholder 23 years* 15 years* 9 years* Peter Michaelis Head of Sustainable Investment team Simon Clements Investment Manager Chris Foster Investment Manager Martyn Jones Mike Appleby Harriet Parker Kenny Watson Aitken Ross Jack Willis Connor Godsell Investment Manager Investment Manager Investment Manager Investment Manager Investment Manager Investment Manager Investment Manager Other members of the Liontrust Sustainable Investment team Mingming Huang Linnea Bengtsson Sarah Nottle Ed Phelps Hannah Muir Nancy Kondelidou Deepesh Marwaha Portfolio Manager Investment Analyst Investment Analyst Investment Analyst Portfolio Manager Investment Analyst Investment Analyst Assistant Assistant Source: *Years in the Sustainable Investment team. See disclaimer for extensive ratings and awards details Global Fundamental 140% 120% 100% 80% 60% 40% 20% Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 0% Cumulative performance since manager inception Edinburgh Investment Trust plc NAV^ Edinburgh Investment Trust plc FTSE All Share 112.7% 103.9% 76.5% Emily Barnard Established since 1889 £1.13bn market capitalisation Team AUM £18.bn Managed by Imran Sattar and Emily Barnard Generating capital growth and income 40-50 stock portfolio Utilising gearing Liontrust Fundamental Investment Process Fundamental bottom-up analysis Identify companies with a competitive advantage Understand the macro from the micro Implement macroeconomic overlay Risk management guardrails and Valuation overlay Team also manage Income, UK Focus and UK Equity Funds Deputy Portfolio Manager Imran Sattar Portfolio Manager Source: Morningstar Direct, 31.03.20 to 31.03.25, GBP, total return. ^Cum Income Net Asset Value (debt at fair value). The return on investments may increase or decrease as a result of currency fluctuations Liontrust Multi-Asset | Actively Different Active Management All stages of the MA Investment process are actively managed; Bespoke Strategic Asset Allocation Tactical Asset Allocation Unfettered Fund Selection Diversification across managers, geography and asset classes Portfolio Construction - meeting client suitability Active Enhancements Position funds and portfolios for the future of investment markets This has been enhanced by implementing a bespoke SAA in 2023 with key input from: Hymans Robertson Defaqto Active Adviser Support Adviser support tailored for client needs Direct Fund manager access Market-leading, client facing literature White labelling opportunities UK-wide roundtable events Weekly educational content (videos, articles, insights) The Liontrust Multi-Asset funds are meeting client outcomes in terms of risk and performance. For example, the Liontrust Explorer 85 Fund was the top performing Active fund over 10 years to 27 March 2025 in the IA Mixed Investment 40-85% Shares sector with a return of 92.7% (Source: FE Analytics. Total return in sterling). OCF = Ongoing charges figure Global Innovation | Differentiated approach to global equity investing Past performance does not predict future returns Liontrust Global Dividend Fund Liontrust Global Innovation Fund Liontrust Global Technology Fund Fund AUM £346m £231m £175m Comparator benchmark MSCI World MSCI AC World MSCI World Information Technology Sector IA Global Equity Income IA Global IA Technology & Technology Innovation Number of holdings 30-40 30-50 30-50 Relative Mag 7 weight (benchmark) -9.6% (20.8%) -11.1% (18.6%) -35.9% (53.9%) Style Core/Mega cap Growth/Large Cap Growth/Large Cap Active share 82.3% 85.8% 71.8% Manager Inception 31 August 2017 30 June 2019 8 February 2023 Manager Inception performance 1 st quartile 1 st quartile 1 st quartile 104.7% 104.0% 67.3% 64.9% 44.3% 44.8% 65.2% 47.8% 30.9% Liontrust Global Dividend MSCI World IA Global Equity Income Liontrust Global Innovation MSCI AC World IA Global Liontrust MSCI World Global IT Technology IA Tech & Tech Innovation Source: Liontrust, Factset, Bloomberg, as at 30.04.25 Investment case Distribution Brand Disciplined process Source: Liontrust, June 2025 Efficient & scalable platform to support strategic growth objectives Centralised operations supporting fund teams Single outsourced global fund administrator (BNY) Continual evolvement to maintain efficient operating platform Further enhancements to operational infrastructure Platform to continue scaling effectively Operating platform Implementation of Aladdin's enterprise portfolio management system integrated with a new data ecosystem (BNY Data Vault) -strengthening data management, delivery and analysis BNY Buy-Side Trading Solutions - giving 24/6 global trading capability, with access to a global network of brokers and venues. Enables us to respond to market developments in real time Factsheets and regulatory reporting outsourced to Broadridge Operational gearing inherent in the business model, provides further margin expansion opportunities Investment case Distribution Brand Disciplined process Platform Source: Liontrust, June 2025 Financial results Past performance does not predict future returns Full Year Results | Year ended 31 March 2025 Strong capital position with surplus capital of £57.5m as at 31 March 2025 (2024: £79.0m) Gross Profit £157.7m which includes £3.6m of performance fees (2024: £186.1m, which includes £10.4m of performance fees) down 15%. Excluding performance fees, Gross Profit was £154.1m (2024: £175.7m) down 12% Adjusted PBT of £48.3m (2024: £67.4m) down 28% Adjusted diluted EPS of 56.7p (2024: 79.16p) down 26% Adjusted operating margin of 29.2% (2024: 35.9%) Administration costs down 8% with Compensation costs down 13% and Other Administration Costs including Depreciation up 2% Revenue margin (excluding performance fees) of 0.60% on Average AuMA of £25.7bn (2024: 0.62% on Average AuMA of £28.3bn). Second interim dividend of 50.0p (2024: 50.0p) payable on 8 August 2025 This slide includes Alternative Performance Measures (APMs) - see Appendix 6 for the definition of these APMs.

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