Liontrust Asset Management : Trading Update Oct 24 Presentation

About this update from Liontrust Asset Management Plc

Liontrust Asset Management PLC Trading Update October 2024 OUR PURPOSE To help clients enjoy a better financial future through the power of active management and distinct investment processes Liontrust's values 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 Liontrust has the courage to take an active and engaged approach to investing, clients, staff and society POWER 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 Liontrust benefits from the power of being dynamic and ambitious, promoting positivity and adaptability to change 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 2 Past performance does not predict future returns Highlights Net flows AuMA Adjusted Strong Full Year profit capital Dividend before tax position maintained £(2.1)bn £26.0bn £67.4m £79.1m 72.0p 6 months to 30 As at 30 September 12 months to Surplus capital as at Second Interim 2024 31 March 2024 31 March 2024 Dividend of 50p September 2024 payable on 9 August 2024 Source: Liontrust Asset Management, September 2024. This slide includes Alternative Performance Measures (APMs) - see Appendix 5 for the definition of these APMs. You may get back less than you originally invested. Please refer to the Key Risks slide for more information 3 Market backdrop Challenging period for active asset management Liontrust's investment bias has been impacted by negative sentiment towards: Quality growth UK equities Mid and small caps Shows the importance of diversity of investment styles and asset classes We see attractive valuations now, such as for stocks in aggregate held by the Economic Advantage and Sustainable Investment teams Focus on distribution, product development and operational infrastructure to ensure Liontrust is positioned to take advantage of change in sentiment We have seen substantial flows into the European Dynamic Fund - AuMA increased from £747 million as at 31 March 2023 to more than £1.6 billion as at 30 September 2024 4 Strategic objectives The investment focus of Liontrust - long-term active management with distinctive processes - remains as relevant as ever and are the foundations for future growth Our four strategic objectives will also be drivers of future growth: Continue to enhance the Further broaden client experience and distribution and the client outcomes base Diversify the product range Strengthen our technological, data and and investment offering digital capability 5 UK equity flows (industry) 1,500 1,000 500 0 £m -500 -1,000 -1,500 -2,000 -2,500 Sep-16 Sep-17 Dec-17Mar-18Jun-18Sep-18Dec-18Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20 Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22 Sep-23 Mar-16 Jun-16 Dec-16 Mar-17 Jun-17 Dec-20 Mar-21 Dec-22 Mar-23 Jun-23 Dec-23 Mar-24 Jun-24 UK equity strategy monthly net flows Annual average Source: Investment Association, IA sector UK monthly net sales, 31.08.24 Includes UK All Companies, UK Equity and UK Smaller Companies IA sector funds 37 months of consecutive outflows 87 months of outflows out of the last 102 (since March 2016) Average £1.2bn of outflows each month in 2024 to 31 August 2024 6 Financial performance Past performance does not predict future returns Full Year Results | Year ended 31 March 2024 Strong capital position with surplus capital of £79.1 million as at 31 March 2024 (£86.5 million as at 31 March 2023) Gross Profit £186.1 million (31 March 2023: £229.8 million) down 19%. Excluding performance fees, gross profit was £175.7 million (31 March 2023: £211.3 million) down 17% Adjusted PBT of £67.4 million (31 March 2023: £87.1 million) down 23% 1 Adjusted diluted EPS of 79.2p (31 March 2023: 109.8p) down 28% 2 Adjusted operating margin of 35.5% (31 March 2023: 37.7%) Revenue margin of 0.67% on Average AuMA of £28.3 billion (31 March 2023: 0.68% on Average AuMA of £33.8 billion). Excluding performance fees revenue margin of 0.62% (31 March 2023: 0.62%) Non-cash Impairment charge of £37.1 million to intangible assets and goodwill: Architas intangible (£7.3 million); Majedie intangible (£23.4million) and goodwill (£6.4 million) Second interim dividend of 50.0 pence per share (2023: 50.0 pence) payable on 9 August 2024 Statutory loss before tax of £0.6m (31 March 2023 PBT: £49.3m). Diluted EPS (5.46)p (31 March 2023: 61.21p). This slide includes Alternative Performance Measures (APMs) - see Appendix 5 for the definition of these APMs. You may get back less than you originally invested. Please refer to the Key Risks slide for more information 8 Reconciliation of adjusted profit to profit before tax | Year ended 31 March 2024 31 Mar 2024 31 Mar 2023 £'000 £'000 Change (Loss) / Profit before tax (579) 49,301 Write back of Majedie acquisition provision - (1,848) Severance compensation and staff reorganisation costs 3,198 3,995 (20%) Professional services 1 15,652 8,026 95% Intangible asset amortisation 12,094 14,793 (18%) Intangible asset and goodwill impairment 2 37,065 12,816 189% Adjustments 68,009 37,782 Adjusted profit before tax 67,430 87,083 (23%) Includes acquisition related and restructuring costs for Neptune, Architas, Majedie (£0.6m (2023: £5.9m)), GAM (£9.5m (2023: £1.5m)) and Other costs relating to target operating model restructure (£5.6m (2023: £0.6m)). Intangible asset and goodwill impairment attributable to Majedie is £29.8 million, and attributable to Architas is £7.3 million. This slide includes Alternative Performance Measures (APMs) - see Appendix 5 for the definition of these APMs. 9

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