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Section 1: 8-K (8-K)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)

November 9, 2017

 

 

Janus Henderson Group plc

(Exact name of registrant as specified in its charter)

 

Jersey, Channel Islands

 

001-38103

 

N/A

(State or other jurisdiction

 

(Commission file

 

(IRS Employer

of incorporation)

 

number)

 

Identification Number)

 

201 Bishopsgate

EC2M 3AE

United Kingdom

(Address of principal executive offices)  (Zip Code)

 

Registrant’s telephone number, including area code

+44 (0) 20 7818 1818

 

N/A

(Former name or former address if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

 

 



 

Item 2.02     Results of Operations and Financial Condition.

 

On November 9, 2017, Janus Henderson Group plc (“JHG”) issued a press release reporting its financial results for the third quarter 2017. Copies of that press release and the earnings presentation are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report.

 

Item 9.01     Financial Statements and Exhibits.

 

(d)  Exhibits. The following exhibits are being furnished herewith.

 

Exhibit
Number

 

Description

99.1

 

Janus Henderson Group plc press release reporting its financial results for the third quarter 2017.

99.2

 

Janus Henderson Group plc third quarter 2017 earnings presentation.

 

2



 

EXHIBIT INDEX

 

Exhibit
Number

 

Description

99.1

 

Janus Henderson Group plc press release reporting its financial results for the third quarter 2017.

99.2

 

Janus Henderson Group plc third quarter 2017 earnings presentation.

 

3



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

Janus Henderson Group plc

 

 

 

Date: November 9, 2017

By:

/s/ Roger Thompson

 

 

Roger Thompson

 

 

Chief Financial Officer

 

4


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

 

Janus Henderson Group plc reports third quarter 2017 diluted EPS of US$0.49,

or US$0.56 on an adjusted basis

 

·             Strong investment performance across all time periods, with 75%, 77% and 87% of assets under management (“AUM”) outperforming benchmarks on a 1, 3 and 5 year basis, respectively, as at 30 September 2017

 

·             Net inflows of US$0.7 billion, with positive flows across Equities, Alternatives and Fixed Income

 

·             Expansion of long-standing strategic partnership with BNP Paribas into the US, supporting Janus Henderson Group’s global operating model

 

·             Merger related annual cost synergy run rate increased to at least US$125 million, up from US$110 million

 

·             AUM increased to US$360.5 billion, up 5% from the second quarter 2017

 

LONDON — 9 November 2017 — Janus Henderson Group plc (NYSE:JHG, ASX:JHG, “JHG” or “the Group”) published its third quarter results for the three month period ended 30 September 2017.

 

Third quarter 2017 net income attributable to JHG of US$99.5 million increased 139% compared to US$41.7 million in the second quarter 2017 (third quarter 2016: US$53.4 million). Net income attributable to JHG on an adjusted basis, adjusted for acquisition and transaction related costs, of US$114.2 million decreased 18% compared with US$139.8 million in the second quarter 2017 (third quarter 2016: US$108.4 million) on a pro forma adjusted basis.

 

Third quarter 2017 diluted earnings per share of US$0.49 increased 75% compared to US$0.28 in the second quarter 2017 (third quarter 2016: US$0.46). Diluted earnings per share on an adjusted basis of US$0.56 decreased 18% compared to US$0.68 in the second quarter 2017 (third quarter 2016: US$0.52) on a pro forma adjusted basis.

 

Integration efforts since the closing of the merger on 30 May 2017 are progressing ahead of expectations. As at 30 September 2017, the combined Group had completed US$72 million of annualised run rate pre-tax net cost synergies, which comprised savings largely from headcount reduction. The Group now expects it will be able to realise at least US$90 million of annualised run rate pre-tax net cost synergies by the end of the first 12 months post completion, up from previous guidance of US$85 million. The expansion of the long-standing strategic partnership with BNP Paribas into the US, which was announced today, coupled with the ongoing integration work across the firm, has enabled the Group to increase expectations for recurring annual run rate pre-tax net cost synergies to at least US$125 million within three years post completion. This is increased from previous guidance of at least US$110 million.

 

Dick Weil and Andrew Formica, co-Chief Executive Officers of Janus Henderson Group plc, said:

 

“The delivery of consistently strong investment performance is a testament to the quality of our investment teams and underpins the improved momentum we have seen in net sales in the third quarter. Importantly, flows were driven by demand for a wide range of strategies across Janus Henderson’s Equity, Fixed Income and Alternative capabilities. We are encouraged by the levels of engagement, support and relationships developing with clients, globally.

 

“Integration across Janus Henderson continues to progress at pace, with our focus concentrated on delivering first-class investment performance and service to our clients. The expansion of our long-standing strategic partnership with BNP Paribas into the US will provide the firm with a consistent global platform to support growth. Our confidence in our ability to deliver cost synergies has enabled us to increase our target to at least US$125 million on an annual run rate basis. Only five months have passed since the formation of Janus Henderson, yet pleasingly we are seeing green shoots in the cross-revenue opportunities, brought about by our global distribution footprint, expanded product set and collaborative culture.”

 

The Group presents its financial results in US$ and in accordance with accounting principles generally accepted in the United States of America (“US GAAP” or “GAAP”) which includes the results of Janus Capital Group from the merger closing date. However, in the opinion of Management, the profitability of the Group and its ongoing operations is best evaluated using additional non-GAAP financial measures on a pro forma adjusted basis. See adjusted statements of income reconciliation for additional information.

 



 

SUMMARY OF FINANCIAL RESULTS (unaudited)

 

 

 

Three months ended

 

 

 

30 Sep

 

30 Jun

 

30 Sep

 

(in US$ millions, except per share data or as noted)

 

2017

 

2017

 

2016

 

GAAP basis:

 

 

 

 

 

 

 

Revenue

 

537.4

 

384.8

 

245.0

 

Operating expenses

 

399.2

 

328.1

 

180.9

 

Operating income

 

138.2

 

56.7

 

64.1

 

Operating margin

 

25.7

%

14.7

%

26.2

%

Net income attributable to JHG

 

99.5

 

41.7

 

53.4

 

Diluted earnings per share

 

0.49

 

0.28

 

0.46

 

 

 

 

Three months ended

 

 

 

30 Sep

 

30 Jun
2017

 

30 Sep
2016

 

(in US$ millions, except per share data or as noted)

 

2017

 

(pro forma)

 

(pro forma)

 

Adjusted basis(1):

 

 

 

 

 

 

 

Revenue

 

454.6

 

482.2

 

419.2

 

Operating expenses

 

286.2

 

282.7

 

273.4

 

Operating income

 

168.4

 

199.5

 

145.8

 

Operating margin

 

37.0

%

41.4

%

34.8

%

Net income attributable to JHG

 

114.2

 

139.8

 

108.4

 

Diluted earnings per share

 

0.56

 

0.68

 

0.52

 

 

Third quarter 2017 adjusted revenue of US$454.6 million decreased from the second quarter result of US$482.2 million as performance fees in the third quarter decreased from the exceptional level achieved in the previous period. Management fees on a pro forma basis grew 5%, driven primarily by growth in average AUM. Third quarter 2017 adjusted operating income of US$168.4 million decreased from US$199.5 million in the second quarter 2017, driven by lower performance fees.

 

DIVIDEND

 

On 8 November 2017, the Board of Directors of JHG (the “Board”) declared a third quarter dividend in respect of the three months ended 30 September 2017 of US$0.32 per share. Shareholders who are on the register on the record date of 20 November 2017 will be paid the dividend on 1 December 2017. JHG does not offer a dividend reinvestment plan.

 

Net tangible assets/(liabilities) per share

 

 

 

30 Sep 2017
US$

 

31 Dec 2016(2)
US$

 

 

 

 

 

 

 

Net tangible assets/(liabilities) per ordinary share

 

(1.28

)

4.85

 

 

Net tangible assets/(liabilities) are defined by the ASX as being total assets less intangible assets less total liabilities ranking ahead of, or equally with, claims of ordinary shares.

 


(1)See adjusted statements of income reconciliation for additional information.

 

(2)31 December 2016 share number was updated for the share consolidation.

 



 

AUM AND FLOWS

 

AUM and flows for periods prior to and including second quarter 2017 present pro forma flows of JHG as if the merger had occurred at the beginning of the period shown.

 

Total Group comparative AUM and flows(1)

 

 

 

Three months ended

 

(in US$ billions)

 

30 Sep
2017

 

30 Jun
2017
(pro forma)

 

30 Sep
2016
(pro forma)

 

Opening AUM

 

344.9

 

330.8

 

317.9

 

Sales

 

18.3

 

20.2

 

15.6

 

Redemptions

 

(17.6

)

(21.2

)

(18.8

)

Net sales/(redemptions)

 

0.7

 

(1.0

)

(3.2

)

Market/FX

 

14.9

 

15.8

 

11.5

 

Acquisitions/(disposals)

 

 

(0.7

)

 

Total AUM

 

360.5

 

344.9

 

326.2

 

 

Third quarter 2017 AUM and flows by capability(1)

 

(in US$ billions)

 

Equities

 

Fixed
Income

 

Quantitative
Equities

 

Multi-
Asset

 

Alternatives

 

Total

 

30 June 2017

 

173.4

 

77.2

 

46.5

 

29.4

 

18.4

 

344.9

 

Sales

 

9.6

 

5.3

 

0.7

 

0.9

 

1.8

 

18.3

 

Redemptions

 

(9.0

)

(4.9

)

(1.2

)

(1.2

)

(1.3

)

(17.6

)

Net sales/(redemptions)

 

0.6

 

0.4

 

(0.5

)

(0.3

)

0.5

 

0.7

 

Market/FX

 

8.3

 

1.8

 

3.0

 

1.1

 

0.7

 

14.9

 

30 September 2017

 

182.3

 

79.4

 

49.0

 

30.2

 

19.6

 

360.5

 

 

Average AUM

 

 

 

Three months ended

 

(in US$ billions)

 

30 Sep
2017

 

30 Jun
2017
(pro forma)

 

30 Sep
2016
(pro forma)

 

Average AUM:

 

 

 

 

 

 

 

Equities

 

178.2

 

169.7

 

153.4

 

Fixed Income

 

78.5

 

76.8

 

76.9

 

Quantitative Equities

 

47.8

 

47.4

 

49.2

 

Multi-Asset

 

29.1

 

28.5

 

28.1

 

Alternatives

 

19.1

 

17.5

 

18.5

 

Total

 

352.7

 

339.9

 

326.1

 

 


(1)Updated AUM and flow data for periods prior to and including 30 June 2017 to ensure tables cast correctly.

 



 

INVESTMENT PERFORMANCE

 

% of AUM outperforming benchmark (as at 30 September 2017)

 

Capability

 

1 year

 

3 years

 

5 years

 

Equities

 

61

%

73

%

82

%

Fixed Income

 

92

%

91

%

97

%

Quantitative Equities

 

85

%

61

%

87

%

Multi-Asset

 

95

%

87

%

90

%

Alternatives

 

91

%

100

%

100

%

Total

 

75

%

77

%

87

%

 

% of mutual fund AUM in top 2 Morningstar quartiles (as at 30 September 2017)

 

Capability

 

1 year

 

3 years

 

5 years

 

Equities

 

56

%

71

%

88

%

Fixed Income

 

81

%

49

%

98

%

Quantitative Equities

 

7

%

97

%

48

%

Multi-Asset

 

83

%

81

%

83

%

Alternatives

 

38

%

25

%

32

%

Total

 

61

%

66

%

85

%

 

Note: Includes Janus Investment Fund, Janus Aspen Series and Clayton Street Trust (US Trusts), Janus Capital Funds (Dublin based), Dublin and UK OEIC and Investment Trusts, Luxembourg SICAVs and Australian Managed Investment Schemes. The top two Morningstar quartiles represent funds in the top half of their category based on total return. On an asset-weighted basis, 82% of total mutual fund AUM was in the top 2 Morningstar quartiles for the 10-year period ended 30 Sep 2017. For the 1-, 3-, 5- and 10-year periods ending 30 Sep 2017, 49%, 60%, 65% and 64% of the 215, 195, 176 and 129 total mutual funds were in the top 2 Morningstar quartiles, respectively.

 

Analysis based on “primary” share class (Class I Shares or Institutional Shares for US mutual funds; share class with the longest history or as defined by Morningstar for other funds). Performance may vary by share class.

 

ETFs and funds not ranked by Morningstar are excluded from the analysis. Capabilities defined by JHG. Data presents the pro forma assets as if the merger had occurred at the beginning of the period shown. © 2017 Morningstar, Inc. All Rights Reserved.

 

2017 FOURTH QUARTER AND FULL YEAR RESULTS

 

JHG intends to publish its 2017 fourth quarter and full year results on Tuesday 6 February 2018 and intends to publish its audited 2017 full year results on Wednesday 28 February 2018.

 



 

THIRD QUARTER 2017 EARNINGS CALL INFORMATION

 

Co-Chief Executive Officers, Dick Weil, Andrew Formica and Chief Financial Officer, Roger Thompson will present these results on 9 November 2017 in a conference call and webcast to be held at 1pm GMT, 8am EDT, 12am AEDT (10 November).

 

Those wishing to participate should call:

 

United Kingdom

0800 404 7656 (toll free)

US & Canada

888 427 9414 (toll free)

Australia

1 800 094 765 (toll free)

All other countries:

+1 719 325 2157 (this is not a toll free number)

Conference ID:

8252169

 

Access to the webcast and accompanying slides will be available via the investor relations section of JHG’s website (www.janushenderson.com/IR). A webcast replay will be available for a period of at least seven days following the call.

 

About Janus Henderson Group plc

 

JHG is a leading global active asset manager dedicated to helping investors achieve long-term financial goals through a broad range of investment solutions, including equities, quantitative equities, fixed income, multi-asset and alternative asset class strategies.

 

As at 30 September 2017, JHG had approximately US$361 billion in AUM, more than 2,000 employees and offices in 27 cities worldwide. Headquartered in London, the company is listed on the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX).

 

Investor enquiries:

 

Media enquiries:

John Groneman

 

North America:

+44 (0) 20 7818 2106

 

Erin Passan

john.groneman@janushenderson.com

 

+1 (303) 394 7681

 

 

erin.passan@janushenderson.com

 

 

 

 

 

EMEA:

 

 

Angela Warburton +44 (0) 20 7818 3010

 

 

angela.warburton@janushenderson.com

 

 

 

 

 

United Kingdom: FTI Consulting

 

 

Andrew Walton

 

 

+ 44 (0) 20 3727 1514

 

 

andrew.walton@FTIConsulting.com

 

 

 

 

 

Asia Pacific: Honner

 

 

Michael Mullane

 

 

+ 61 28248 3740

 

 

michaelmullane@honner.com.au

 



 

FINANCIAL DISCLOSURES

 

JANUS HENDERSON GROUP PLC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

 

 

 

Three months ended

 

 

 

30 Sep

 

30 Jun

 

30 Sep

 

(in US$ millions, except per share data or as noted)

 

2017

 

2017

 

2016

 

Revenue:

 

 

 

 

 

 

 

Management fees

 

477.7

 

296.0

 

217.7

 

Performance fees

 

(2.1

)

57.7

 

9.3

 

Shareowner servicing fees

 

30.2

 

9.9

 

 

Other revenue

 

31.6

 

21.2

 

18.0

 

Total revenue

 

537.4

 

384.8

 

245.0

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

 

176.7

 

123.6

 

65.7

 

Long-term incentive plans

 

50.9

 

47.3

 

20.2

 

Distribution expenses

 

82.8

 

60.7

 

50.7

 

Investment administration

 

11.7

 

9.7

 

10.9

 

Marketing

 

8.1

 

10.1

 

2.6

 

General, administrative and occupancy

 

54.2

 

67.3

 

25.0

 

Depreciation and amortisation

 

14.8

 

9.4

 

5.8

 

Total operating expenses

 

399.2

 

328.1

 

180.9

 

 

 

 

 

 

 

 

 

Operating income

 

138.2

 

56.7

 

64.1

 

 

 

 

 

 

 

 

 

Interest expense

 

(4.7

)

(2.0

)

(0.5

)

Investment gains (losses), net

 

6.1

 

9.8

 

(2.0

)

Other non-operating income (expenses), net

 

8.7

 

(2.0

)

0.5

 

Income before taxes

 

148.3

 

62.5

 

62.1

 

Income tax provision

 

(46.1

)

(21.0

)

(8.5

)

Net income

 

102.2

 

41.5

 

53.6

 

Net loss (income) attributable to noncontrolling interests

 

(2.7

)

0.2

 

(0.2

)

Net income attributable to JHG

 

99.5

 

41.7

 

53.4

 

Less: allocation of earnings to participating stock-based awards

 

2.8

 

1.1

 

1.2

 

Net income attributable to JHG common shareholders

 

96.7

 

40.6

 

52.2

 

 

 

 

 

 

 

 

 

Basic weighted-average shares outstanding (in millions)

 

196.5

 

140.2

 

109.3

 

Diluted weighted-average shares outstanding (in millions)

 

198.2

 

143.8

 

113.8

 

 

 

 

 

 

 

 

 

Diluted earnings per share (in US$)

 

0.49

 

0.28

 

0.46

 

Average AUM (in US$ billions)

 

352.7

 

204.3

 

130.5

 

 

Note: Third quarter 2016 data has been updated in comparison to information presented in the second quarter 2017 results presentation on 8 August 2017 to reflect revised long-term incentive plan numbers due to alignment of accounting policies and an adjustment to the accounting treatment under US GAAP.

 



 

Pro forma statements of income

 

The table below reflects the GAAP basis results for the three months ended 30 September 2017 and the pro forma results of JHG for the three months ended 30 June 2017 and 30 September 2016, as though the merger had taken place at the beginning of the period shown:

 

 

 

Three months ended

 

(in US$ millions)

 

30 Sep 2017

 

30 Jun 2017
(pro forma)

 

30 Sep 2016
(pro forma)

 

Revenue:

 

 

 

 

 

 

 

Management fees

 

477.7

 

454.3

 

444.4

 

Performance fees

 

(2.1

)

52.3

 

(2.5

)

Shareowner servicing fees

 

30.2

 

29.5

 

29.1

 

Other revenue

 

31.6

 

30.0

 

32.9

 

Total revenue

 

537.4

 

566.1

 

503.9

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

 

176.7

 

185.7

 

153.5

 

Long-term incentive compensation

 

50.9

 

61.2

 

44.4

 

Distribution expenses

 

82.8

 

83.9

 

84.7

 

Investment administration

 

11.7

 

9.7

 

10.9

 

Marketing

 

8.1

 

23.2

 

6.8

 

General, administrative and occupancy

 

54.2

 

98.7

 

58.6

 

Depreciation and amortisation

 

14.8

 

15.2

 

15.7

 

Total operating expenses

 

399.2

 

477.6

 

374.6

 

 

 

 

 

 

 

 

 

Operating income

 

138.2

 

88.5

 

129.3

 

 

 

 

 

 

 

 

 

Interest expense

 

(4.7

)

(5.1

)

(4.3

)

Investment gains (losses), net

 

6.1

 

9.9

 

(0.5

)

Other non-operating income (expenses), net

 

8.7

 

(1.6

)

1.5

 

Income before taxes

 

148.3

 

91.7

 

126.0

 

Income tax provision

 

(46.1

)

(31.7

)

(31.5

)

Net income

 

102.2

 

60.0

 

94.5

 

Net income attributable to noncontrolling interests

 

(2.7

)

(1.0

)

(2.1

)

Net income attributable to JHG

 

99.5

 

59.0

 

92.4

 

 

Note: Third quarter 2016 data has been updated in comparison to information presented in the second quarter 2017 results presentation on 8 August 2017 to reflect revised long-term incentive plan numbers due to alignment of accounting policies and an adjustment to the accounting treatment under US GAAP.

 



 

Adjusted statements of income

 

The following are reconciliations of GAAP basis and pro forma basis revenues, operating income, net income attributable to JHG and diluted earnings per share to adjusted revenues, adjusted operating income, adjusted net income attributable to JHG and adjusted diluted earnings per share. The results for the three months ended 30 September 2017 reconcile GAAP basis amounts to adjusted amounts while the three months ended 30 June 2017 and 30 September 2016 reconcile pro forma amounts to adjusted amounts. Pro forma amounts are based on the combined results of JHG as though the merger has taken place at the beginning of the period shown:

 

 

 

Three months ended

 

 

 

 

 

30 Jun

 

30 Sep

 

(in US$ millions, except per share data or as noted)

 

30 Sep
2017

 

2017
(pro
forma)

 

2016
(pro
forma)

 

Reconciliation of revenue to adjusted revenue

 

 

 

 

 

 

 

Revenue

 

537.4

 

566.1

 

503.9

 

Distribution expenses(1)

 

(82.8

)

(83.9

)

(84.7

)

Adjusted revenue

 

454.6

 

482.2

 

419.2

 

 

 

 

 

 

 

 

 

Reconciliation of operating income to adjusted operating income

 

 

 

 

 

 

 

Operating income

 

138.2

 

88.5

 

129.3

 

Employee compensation and benefits(2)

 

15.3

 

25.4

 

0.8

 

Long term incentive plans(2)

 

2.8

 

13.2

 

 

Marketing(2)

 

0.7

 

14.4

 

 

General, administration and occupancy(2)

 

4.4

 

50.2

 

7.9

 

Depreciation and amortisation(3)

 

7.0

 

7.8

 

7.8

 

Adjusted operating income

 

168.4

 

199.5

 

145.8

 

 

 

 

 

 

 

 

 

Operating margin

 

25.7

%

15.6

%

25.7

%

Adjusted operating margin

 

37.0

%

41.4

%

34.8

%

 

 

 

 

 

 

 

 

Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG

 

 

 

 

 

 

 

Net income attributable to JHG

 

99.5

 

59.0

 

92.4

 

Employee compensation and benefits(2)

 

15.3

 

25.4

 

0.8

 

Long term incentive plans(2)

 

2.8

 

13.2

 

 

Marketing(2)

 

0.7

 

14.4

 

 

General, administration and occupancy(2)

 

4.4

 

50.2

 

7.9

 

Depreciation and amortisation(3)

 

7.0

 

7.8

 

7.8

 

Investment gains(4)

 

 

(10.2

)

 

Interest expense(5)

 

1.3

 

0.7

 

 

Other non-operating income (expenses), net(5)

 

(12.7

)

2.6

 

0.5

 

Income tax provision(6)

 

(4.1

)

(23.3

)

(1.0

)

Adjusted net income attributable to JHG

 

114.2

 

139.8

 

108.4

 

 

 

 

 

 

 

 

 

Less: allocation of earnings to participating stock-based awards

 

(3.2

)

(4.0

)

(3.1

)

Adjusted net income attributable to JHG common shareholders

 

111.0

 

135.8

 

105.3

 

 

 

 

 

 

 

 

 

Weighted average diluted common shares outstanding — diluted (two class) (in millions)

 

198.2

 

200.0

 

203.4

 

Diluted earnings per share (two class) (in US$)

 

0.49

 

0.29

 

0.46

 

Adjusted diluted earnings per share (two class) (in US$)

 

0.56

 

0.68

 

0.52

 

 


Note: Third quarter 2016 data has been updated in comparison to information presented in the second quarter 2017 results presentation on 8 August 2017 to reflect revised long-term incentive plan numbers due to alignment of accounting policies and an adjustment to the accounting treatment under US GAAP.

 

(1)Distribution expenses are paid to financial intermediaries for the distribution of JHG’s investment products. JHG management believes that the deduction of third-party distribution, service and advisory expenses from revenues in the

 



 

computation of net revenue reflects the nature of these expenses as revenue-sharing activities, as these costs are passed through to external parties who perform functions on behalf of, and distribute, the Group’s managed AUM.

 

(2)Adjustments primarily represent deal and integration costs in relation to the merger. These costs primarily represent severance costs, legal costs and consulting fees. JHG management believes these costs do not represent the ongoing operations of the Group.

 

(3)Investment management contracts have been identified as a separately identifiable intangible asset arising on the acquisition of subsidiaries and businesses. Such contracts are recognised at the net present value of the expected future cash flows arising from the contracts at the date of acquisition. For segregated mandate contracts, the intangible asset is amortised on a straight-line basis over the expected life of the contracts. JHG management believes these non-cash and acquisition related costs do not represent the ongoing operations of the Group.

 

(4)Adjustment primarily relates to the gain recognised on disposal of the alternative UK small cap team (‘Volantis team’) on 1 April 2017. JHG management believes this gain does not represent the ongoing operations of the Group.

 

(5)Adjustments primarily represent fair value movements on options issued to Dai-ichi and deferred consideration costs associated with acquisitions prior to the Merger. JHG Management believes these costs do not represent the ongoing operations of the Group.

 

(6)The tax impact of the adjustments are calculated based on the US or foreign statutory tax rate as they relate to each adjustment. Certain adjustments are either not taxable or not tax deductible.

 



 

Balance sheet

 

JANUS HENDERSON GROUP PLC

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

 

 

30 Sep

 

31 Dec

 

(in US$ millions)

 

2017

 

2016

 

Assets

 

 

 

 

 

Cash and cash equivalents

 

650.1

 

279.0

 

Investment securities

 

276.4

 

79.6

 

Other assets

 

880.0

 

524.8

 

Property, equipment and software, net

 

74.3

 

41.2

 

Intangible assets and goodwill, net

 

4,708.5

 

1,142.8

 

Assets of consolidated variable interest entities

 

497.9

 

366.0

 

Total assets

 

7,087.2

 

2,433.4

 

 

 

 

 

 

 

Liabilities, redeemable noncontrolling interests and equity

 

 

 

 

 

Debt

 

406.0

 

 

Other liabilities

 

896.6

 

486.2

 

Deferred tax liabilities, net

 

1,098.2

 

70.7

 

Liabilities of consolidated variable interest entities

 

23.2

 

26.2

 

Redeemable noncontrolling interests

 

210.8

 

158.0

 

Total equity

 

4,452.4

 

1,692.3

 

Total liabilities, redeemable noncontrolling interests and equity

 

7,087.2

 

2,433.4

 

 

AUM(1)

 

(in US$ billions)

 

Equities

 

Fixed
Income

 

Quantitative
Equities

 

Multi-Asset

 

Alternatives

 

Total

 

30 September 2016 (pro forma)

 

153.8

 

77.1

 

48.0

 

28.3

 

19.0

 

326.2

 

Sales

 

10.1

 

7.3

 

1.0

 

1.0

 

1.5

 

20.9

 

Redemptions(2)

 

(9.9

)

(6.9

)

(2.6

)

(1.5

)

(2.1

)

(23.0

)

Net sales/(redemptions)

 

0.2

 

0.4

 

(1.6

)

(0.5

)

(0.6

)

(2.1

)

Market/FX

 

(0.7

)

(3.8

)

0.1

 

0.2

 

(0.7

)

(4.9

)

31 December 2016 (pro forma)

 

153.3

 

73.7

 

46.5

 

28.0

 

17.7

 

319.2

 

Sales

 

8.4

 

5.7

 

3.0

 

0.9

 

1.4

 

19.4

 

Redemptions(2)

 

(10.8

)

(5.4

)

(6.7

)

(1.5

)

(2.0

)

(26.4

)

Net sales/(redemptions)

 

(2.4

)

0.3

 

(3.7

)

(0.6

)

(0.6

)

(7.0

)

Market/FX

 

11.4

 

2.3

 

3.4

 

1.2

 

0.3

 

18.6

 

31 March 2017 (pro forma)

 

162.3

 

76.3

 

46.2

 

28.6

 

17.4

 

330.8

 

Sales

 

10.6

 

5.4

 

0.7

 

1.2

 

2.3

 

20.2

 

Redemptions(2)

 

(9.4

)

(6.3

)

(2.5

)

(1.5

)

(1.5

)

(21.2

)

Net sales/(redemptions)

 

1.2

 

(0.9

)

(1.8

)

(0.3

)

0.8

 

(1.0

)

Market/FX

 

9.9

 

1.9

 

2.1

 

1.1

 

0.8

 

15.8

 

Acquisitions/(disposals)

 

 

(0.1

)

 

 

(0.6

)

(0.7

)

30 June 2017 (pro forma)

 

173.4

 

77.2

 

46.5

 

29.4

 

18.4

 

344.9

 

Sales

 

9.6

 

5.3

 

0.7

 

0.9

 

1.8

 

18.3

 

Redemptions(2)

 

(9.0

)

(4.9

)

(1.2

)

(1.2

)

(1.3

)

(17.6

)

Net sales/(redemptions)

 

0.6

 

0.4

 

(0.5

)

(0.3

)

0.5

 

0.7

 

Market/FX

 

8.3

 

1.8

 

3.0

 

1.1

 

0.7

 

14.9

 

30 September 2017

 

182.3

 

79.4

 

49.0

 

30.2

 

19.6

 

360.5

 

 


Note: FX reflects movement in AUM resulting from changes in foreign currency rates as non-USD denominated AUM is translated into USD.

 

(1)Updated AUM and flow data for periods prior to and including 30 June 2017 to ensure tables cast correctly.

 

(2)Redemptions include impact of client switches which could cause a positive balance on occasion.

 



 

STATUTORY DISCLOSURES

 

Associates and joint ventures

 

As at 30 September 2017, the Group holds interests in the following associates and joint ventures managed through shareholder agreements with third party investors, accounted for under the equity method:

 

·                  Optimum Investment Management Ltd. Ownership 50%

·                  Long Tail Alpha LLC Ownership 20%

 

Movement in controlled entities

 

There have been no acquisitions or disposals of controlled entities in the three month period to 30 September 2017.

 

Basis of preparation

 

The interim consolidated financial statements contain all adjustments necessary to fairly present the financial position, results of operations and cash flows of JHG in accordance US GAAP. All such adjustments are of a normal recurring nature. Such financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. The financial statements should be read in conjunction with the annual consolidated financial statements and notes for the year ended 31 December 2016, which can be found in JHG’s prospectus dated 21 March 2017 as filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended (File no. 333-216824).

 

Corporate governance principles and recommendations

 

In the opinion of the Directors, the financial records of the Group have been properly maintained, and the Condensed Consolidated Financial Statements comply with the appropriate accounting standards and give a true and fair view of the financial position and performance of the Group. This opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

 



 

FORWARD-LOOKING STATEMENTS DISCLAIMER

 

Past performance is no guarantee of future results. Investing involves risk, including the possible loss of principal and fluctuation of value.

 

This document includes statements concerning potential future events involving Janus Henderson Group plc that could differ materially from the events that actually occur. The differences could be caused by a number of factors including those factors identified in Janus Henderson Group’s Registration Statement, on file with the Securities and Exchange Commission (Commission file no. 333-216824), including those that appear under headings such as “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. Many of these factors are beyond the control of the company and its management. Any forward-looking statements contained in this document are as at the date on which such statements were made. The company assumes no duty to update them, even if experience, unexpected events, or future changes make it clear that any projected results expressed or implied therein will not be realised.

 

Annualised, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results.

 

The information, statements and opinions contained in this document do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments.

 

Not all products or services are available in all jurisdictions.

 

Mutual funds in the US distributed by Janus Henderson Distributors.

 

Please consider the charges, risks, expenses and investment objectives carefully before investing. For a US fund prospectus or, if available, a summary prospectus containing this and other information, please contact your investment professional or call 800.668.0434. Read it carefully before you invest or send money.

 

Janus Henderson, Janus and Henderson are trademarks or registered trademarks of Janus Henderson Investors. © Janus Henderson Investors. The name Janus Henderson Investors includes HGI Group Limited, Henderson Global Investors (Brand Management) Sarl and Janus International Holding LLC.

 


(Back To Top)

Section 3: EX-99.2 (EX-99.2)

Exhibit 99.2

Dick Weil and Andrew Formica Co-Chief Executive Officers Roger Thompson Chief Financial Officer Janus Henderson Group 3Q17 results presentation Thursday 9 November 2017

GRAPHIC

 


Dick Weil Co-Chief Executive Officer 3Q17 results Business update

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Executive summary Strong investment performance across time periods Positive net flows of US$0.7bn Announced expansion of long-term strategic partnership with BNP Paribas, supporting global operating model Integration efforts ahead of expectations; increased cost synergy target to at least US$125m AUM increased 5% to US$360.5bn Declared US$0.32 per share dividend with adjusted diluted EPS of US$0.56 1 Represents percentage of AUM outperforming the relevant benchmark. Full performance disclosures detailed in the appendix on slide 21. 2 2Q17 data presents pro forma net flows, AUM and results of JHG as if the merger had occurred at the beginning of the period shown. 3 See adjusted financial measures reconciliation on slide 26 for additional information. For periods prior to and including 2Q17, pro forma adjusted financial measures reconciliations are provided. 3Q17 2Q17 3 year investment performance¹ 77% 71% Net flows² US$0.7bn (US$1.0bn) Total AUM² US$360.5bn US$344.9bn US GAAP diluted EPS US$0.49 US$0.28 Adjusted diluted EPS²,³ US$0.56 US$0.68 Dividend per share US$0.32 US$0.32

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Capability 1 year 3 years 5 years Equities Fixed Income Quantitative Equities Multi-Asset Alternatives Total Investment performance Investment performance strong across time periods and capabilities % of AUM outperforming benchmark (31 Dec 2016 to 30 Sep 2017) % of AUM outperforming benchmark (as at 30 Sep 2017) Note: Represents percentage of AUM outperforming the relevant benchmark. For periods prior to and including 30 Jun 2017, JHG pro forma AUM data is used in the calculation as if the merger had occurred at the beginning of the period shown. Full performance disclosures detailed in the appendix on slide 21. 82% 100% 87% 73% 61% 87% 77% 95% 91% 75% 90% 100% 97% 91% 92% 61% 85% 87% 40% 56% 77% 50% 60% 82% 69% 71% 89% 75% 77% 87% 1 year 3 years 5 years 31 Dec 2016 31 Mar 2017 30 Jun 2017 30 Sep 2017

GRAPHIC

 


Total flows Total flows 1Q16 to 3Q17 (US$bn) 23% 20% 26% 24% 24% (25%) (24%) (28%) (33%) (26%) 23% (24%) Note: Data for periods prior to and including 2Q17 presents pro forma flows of JHG as if the merger had occurred at the beginning of the period shown 1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM Redemptions Sales Net sales / (redemptions) Annualised gross sales¹ Annualised gross redemptions¹ Net flows turned positive in 3Q17 21% (20%) 18.6 18.2 15.6 20.9 19.4 20.2 18.3 (19.8) (20.1) (18.8) (23.0) (26.4) (21.2) (17.6) (1.2) (1.9) (3.2) (2.1) (7.0) (1.0) 0.7 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

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3Q17 flows by capability 27% 6% 13% 38% 22% (25%) (10%) (16%) (29%) (21%) 3Q17 flows by capability (US$bn) Annualised gross sales¹ Annualised gross redemptions¹ 1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM Redemptions Sales Net sales / (redemptions) 3Q17 strength driven by inflows in Equities, Fixed Income and Alternatives 9.6 5.3 0.7 0.9 1.8 (9.0) (4.9) (1.2) (1.2) (1.3) 0.6 0.4 (0.5) (0.3) 0.5 Equities Fixed Income Quantitative Equities Multi-Asset Alternatives

GRAPHIC

 


Roger Thompson Chief Financial Officer 3Q17 results Financial update

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US$m 3 months ended 30 Sep 2017 US GAAP Adjustments Adjusted Revenue Management fees 477.7 Performance fees (2.1) Shareowner servicing fees 30.2 Other revenue 31.6 Total revenue 537.4 (82.8) 454.6 Operating expenses Employee compensation and benefits 176.7 Long-term incentive plans 50.9 Distribution expenses 82.8 Investment administration 11.7 Marketing 8.1 General, administrative and occupancy 54.2 Depreciation and amortisation 14.8 Total operating expenses 399.2 (113.0) 286.2 Operating income 138.2 30.2 168.4 3Q17 statement of income Note: See adjusted financial measures reconciliation on slide 25 for additional information. US GAAP and adjusted

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Financial highlights 3Q17 2Q17 Change 3Q17 vs 2Q17 3Q16 Change 3Q17 vs 3Q16 Average AUM 352.7bn 339.9bn 4% 326.1bn 8% Total revenue 537.4m 566.1m (5%) 503.9m 7% Operating income 138.2m 88.5m 56% 129.3m 7% Operating margin 25.7% 15.6% 10.1ppt 25.7% – US GAAP diluted EPS 0.49 0.29 69% 0.46 7% Adjusted revenue 454.6m 482.2m (6%) 419.2m 8% Adjusted operating income 168.4m 199.5m (16%) 145.8m 16% Adjusted operating margin 37.0% 41.4% (4.4ppt) 34.8% 2.2ppt Adjusted diluted EPS 0.56 0.68 (18%) 0.52 8% Summary of results (US$ unless otherwise stated) Note: 2Q17 and 3Q16 data presents results of JHG as if the merger had occurred at the beginning of the period shown. See adjusted financial measures reconciliation on slides 25 and 26 for additional information. 3Q16 data has been updated in comparison to information presented in the 2Q17 results presentation on 8 August 2017, to reflect revised long-term incentive plan numbers due to alignment of accounting policies and an adjustment to the accounting treatment under US GAAP. US GAAP and adjusted

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Revenue and operating expenses 3Q17 adjusted operating results reflect seasonality of performance fees Adjusted revenue US$m 3Q17 2Q17 Change Total adjusted revenue 454.6 482.2 (6%) Management fees 477.7 454.3 5% Performance fees (2.1) 52.3 nm Shareowner servicing fees 30.2 29.5 2% Other revenue 31.6 30.0 5% Distribution expenses (82.8) (83.9) (1%) Adjusted operating expenses US$m 3Q17 2Q17 Change Total adjusted operating expenses 286.2 282.7 1% Employee comp. and benefits 161.4 160.3 1% Long-term incentive plans 48.1 48.0 – Non-staff operating expenses³ 76.7 74.4 3% Revenue drivers 5% increase in management fees driven by higher average AUM 3Q17 group average net¹ management fee margin of 45.2bps (2Q17: 44.5bps²) Reduction in performance fees due to seasonality and lower performance fees from SICAVs and UK OEICs Operating expense drivers 3Q17 employee compensation increased 1% 3Q17 adjusted operating margin of 37.0% (2Q17: 41.4%) 3Q17 adjusted compensation ratio of 46.1% (2Q17: 43.2%) Note: 2Q17 data presents the results of JHG as if the merger had occurred at the beginning of the period shown. See adjusted financial measures reconciliation on slide 25 for additional information. 1 Net margin based on management fees net of distribution expenses 2 2Q17 average net management fee margin has been adjusted from prior disclosure to reflect a consistent treatment of distribution expenses 3 Includes investment administration; marketing; general, administrative and occupancy; depreciation and amortisation

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Andrew Formica Co-Chief Executive Officer 3Q17 results Merger update

GRAPHIC

 


Integration progress Delivering synergies through partnership and ongoing integration efforts Integration efforts tracking ahead of expectations Continue to deliver on cost synergies US$72m of annual run rate pre-tax net cost synergies completed as at 30 Sep 2017 Expect to complete at least US$90m by the end of the first 12 months post completion Integration and deal related costs incurred of US$183m since announcement Cost synergy target increased to at least US$125m of recurring annual run rate pre-tax net cost synergies within three years post merger Increased synergy expectations Strategic partnership with BNP Paribas Long-term strategic relationship creates consistent global operating platform, which will support future growth Partnership to provide ongoing benefit for clients and shareholders Clients will benefit from lower administration fees and expenses, as well as BNP’s expertise Janus Henderson shareholders will benefit from lower ongoing operating costs BNP Paribas to pay consideration of US$36m at closing, expected in 1Q18

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Revenue growth opportunities Positive, early signs of revenue synergies Dai-ichi strategic relationship Dai-ichi has exceeded US$500m incremental commitment Recent investments by Dai-ichi in 3Q and 4Q: c.US$155m into European Secured Loans US$100m into Absolute Return Income Ongoing efforts to identify growth opportunities Cross-sell opportunities Increased penetration of existing products Our top selling US mutual fund in 3Q17 was Global Equity Income Growing interest from non-US clients investing across multiple strategies Stage 1 – ongoing Stage 2 – ongoing Stage 3 – in progress New product development Leveraging existing regional capabilities to create global products (e.g. Global Small Cap) Enhancing Intech’s capabilities to create new products Expanding Multi-Asset and Alternatives capabilities Partnering with our clients to develop innovative solutions

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3Q17 summary Strong long-term investment performance is providing a solid foundation for future growth Client response to the merger is encouraging, underpinning deal rationale Positive organic growth in 3Q17 Integration efforts continue to track ahead of expectations Increased cost synergy target to at least US$125m as a result of ongoing successful integration and strategic partnership with BNP Early signs of revenue synergies among clients globally

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Q&A

GRAPHIC

 


Appendix

GRAPHIC

 


Assets under management as at 30 Sep 2017 By client type By capability By client location US$182.3bn US$79.4bn US$49.0bn US$30.2bn US$19.6bn US$60.5bn US$156.7bn US$143.3bn US$186.6bn US$116.8bn US$57.1bn AUM: US$360.5bn 51% 22% 14% 8% 5% Equities Fixed Income Quantitative Equities Multi-Asset Alternatives 17% 43% 40% Self-directed Intermediary Institutional 52% 32% 16% Americas EMEA Asia Pacific

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Flows: Equities and Fixed Income Equities (US$bn) Fixed Income (US$bn) 22% 26% 22% 26% (25%) (26%) (28%) (23%) 26% 38% 31% 28% (24%) (36%) (30%) (33%) Redemptions Sales Net sales / (redemptions) Note: Data for periods prior to and including 2Q17 presents pro forma flows of JHG as if the merger had occurred at the beginning of the period shown Updated AUM and flow data for periods prior to and including 2Q17 to ensure charts cast correctly 1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM. Annualised gross sales¹ Annualised gross redemptions¹ 22% (21%) 27% (25%) 8.1 10.1 8.4 10.6 9.6 (9.0) (9.9) (10.8) (9.4) (9.0) (0.9) 0.2 (2.4) 1.2 0.6 3Q16 4Q16 1Q17 2Q17 3Q17 4.9 7.3 5.7 5.4 5.3 (4.5) (6.9) (5.4) (6.3) (4.9) 0.4 0.4 0.3 (0.9) 0.4 3Q16 4Q16 1Q17 2Q17 3Q17

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Flows: Quantitative Equities, Multi-Asset and Alternatives Quantitative Equities (US$bn) Multi-Asset (US$bn) Alternatives (US$bn) 10% 15% 12% 5% 8% 26% 6% (45%) (45%) (35%) (21%) (22%) (20%) (21%) (19%) (22%) (58%) (22%) Note: Data for periods prior to and including 2Q17 presents pro forma flows of JHG as if the merger had occurred at the beginning of the period shown. Updated AUM and flow data for periods prior to and including 2Q17 to ensure charts cast correctly. 1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM. 2 1Q17 gross sales and redemptions include an intra-strategy transfer of US$1.6bn from a Danish krone-denominated account into a US dollar-denominated account. Annualised gross sales¹ Annualised gross redemptions¹ Redemptions Sales Net sales / (redemptions) 6% (10%) (16%) 16% 13% 28% 32% 31% 54% (31%) (29%) 38% 0.7 1.0 0.9 1.2 0.9 (1.5) (1.5) (1.5) (1.5) (1.2) (0.8) (0.5) (0.6) (0.3) (0.3) 3Q16 4Q16 1Q17 2Q17 3Q17 0.6 1.0 3.0 0.7 0.7 (2.3) (2.6) (6.7) (2.5) (1.2) (1.7) (1.6) (3.7) (1.8) (0.5) 3Q16 4Q16 1Q17² 2Q17 3Q17 1.3 1.5 1.4 2.3 1.8 (1.5) (2.1) (2.0) (1.5) (1.3) (0.2) (0.6) (0.6) 0.8 0.5 3Q16 4Q16 1Q17 2Q17 3Q17

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Total net flows by capability (1.9) (3.2) (2.1) (7.0) (1.0) Total net flows by capability 1Q16 to 3Q17 (US$bn) (1.2) Note: Data for periods prior to and including 2Q17 presents pro forma flows of JHG as if the merger had occurred at the beginning of the period shown 0.7 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Equities Fixed Income Quantitative Equities Multi-Asset Alternatives

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AUM and flows by capability Note: Data for periods prior to and including 2Q17 presents pro forma AUM and flows of JHG as if the merger had occurred at the beginning of the period shown. Updated AUM and flow data for periods prior to and including 2Q17 to ensure tables cast correctly. All data in US$bn Equities Fixed Income Quantitative Equities Multi-Asset Alternatives Total AUM 31 Mar 2016 148.7 74.1 48.6 29.1 20.8 321.3 Sales 7.5 6.2 1.3 1.0 2.2 18.2 Redemptions (8.9) (4.9) (2.0) (1.5) (2.8) (20.1) Net sales / (redemptions) (1.4) 1.3 (0.7) (0.5) (0.6) (1.9) Market / FX (0.8) (0.4) 1.0 (0.3) (1.0) (1.5) AUM 30 Jun 2016 146.5 75.0 48.9 28.3 19.2 317.9 Sales 8.1 4.9 0.6 0.7 1.3 15.6 Redemptions (9.0) (4.5) (2.3) (1.5) (1.5) (18.8) Net sales / (redemptions) (0.9) 0.4 (1.7) (0.8) (0.2) (3.2) Market / FX 8.2 1.7 0.8 0.8 – 11.5 AUM 30 Sep 2016 153.8 77.1 48.0 28.3 19.0 326.2 Sales 10.1 7.3 1.0 1.0 1.5 20.9 Redemptions (9.9) (6.9) (2.6) (1.5) (2.1) (23.0) Net sales / (redemptions) 0.2 0.4 (1.6) (0.5) (0.6) (2.1) Market / FX (0.7) (3.8) 0.1 0.2 (0.7) (4.9) AUM 31 Dec 2016 153.3 73.7 46.5 28.0 17.7 319.2 Sales 8.4 5.7 3.0 0.9 1.4 19.4 Redemptions (10.8) (5.4) (6.7) (1.5) (2.0) (26.4) Net sales / (redemptions) (2.4) 0.3 (3.7) (0.6) (0.6) (7.0) Market / FX 11.4 2.3 3.4 1.2 0.3 18.6 AUM 31 Mar 2017 162.3 76.3 46.2 28.6 17.4 330.8 Sales 10.6 5.4 0.7 1.2 2.3 20.2 Redemptions (9.4) (6.3) (2.5) (1.5) (1.5) (21.2) Net sales / (redemptions) 1.2 (0.9) (1.8) (0.3) 0.8 (1.0) Market / FX 9.9 1.9 2.1 1.1 0.8 15.8 Acquisitions / disposals – (0.1) – – (0.6) (0.7) AUM 30 Jun 2017 173.4 77.2 46.5 29.4 18.4 344.9 Sales 9.6 5.3 0.7 0.9 1.8 18.3 Redemptions (9.0) (4.9) (1.2) (1.2) (1.3) (17.6) Net sales / (redemptions) 0.6 0.4 (0.5) (0.3) 0.5 0.7 Market / FX 8.3 1.8 3.0 1.1 0.7 14.9 AUM 30 Sep 2017 182.3 79.4 49.0 30.2 19.6 360.5

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Investment performance Capability 4Q16 1Q17 2Q17 3Q17 1yr 3yr 5 yr 1yr 3yr 5 yr 1yr 3yr 5 yr 1yr 3yr 5 yr Equities 30% 57% 74% 38% 64% 73% 68% 77% 84% 61% 73% 82% Fixed Income 90% 93% 96% 92% 90% 93% 93% 92% 91% 92% 91% 97% Quantitative Equities 7% 5% 40% 0% 12% 92% 6% 48% 91% 85% 61% 87% Multi-Asset 21% 22% 90% 86% 22% 89% 97% 21% 100% 95% 87% 90% Alternatives 64% 100% 100% 73% 90% 100% 97% 67% 100% 91% 100% 100% Total 40% 56% 77% 50% 60% 82% 69% 71% 89% 75% 77% 87% % of AUM outperforming benchmark Note: Outperformance is measured based on composite performance gross of fees vs primary benchmark, except where a strategy has no benchmark index or corresponding composite in which case the most relevant metric is used: (1) composite gross of fees vs zero for absolute return strategies, (2) fund net of fees vs primary index or (3) fund net of fees vs Morningstar peer group average or median. Non-discretionary and separately managed account assets are included with a corresponding composite where applicable. Cash management vehicles, ETFs, Managed CDOs, Private Equity funds and custom non-discretionary accounts with no corresponding composite are excluded from the analysis. Excluded assets represent 4% of AUM as at 31 Dec 2016, 31 Mar 2017 and 30 Jun 2017 and 3% of AUM as at 30 Sep 2017. Capabilities defined by Janus Henderson. Data for periods prior to and including 2Q17 presents the pro forma assets as if the merger had occurred at the beginning of the period shown.

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Mutual fund investment performance Capability 4Q16 1Q17 2Q17 3Q17 1yr 3yr 5 yr 1yr 3yr 5 yr 1yr 3yr 5 yr 1yr 3yr 5 yr Equities 49% 80% 75% 46% 87% 71% 53% 87% 90% 56% 71% 88% Fixed Income 36% 42% 96% 38% 44% 98% 38% 41% 98% 81% 49% 98% Quantitative Equities 30% 79% 86% 3% 80% 100% 3% 58% 100% 7% 97% 48% Multi-Asset 5% 81% 94% 77% 76% 96% 79% 80% 97% 83% 81% 83% Alternatives 21% 21% 29% 12% 23% 67% 63% 24% 69% 38% 25% 32% Total 40% 70% 78% 45% 75% 78% 54% 74% 90% 61% 66% 85% % of mutual fund AUM in top 2 Morningstar quartiles Note: Includes Janus Investment Fund, Janus Aspen Series and Clayton Street Trust (US Trusts), Janus Capital Funds (Dublin based), Dublin and UK OEIC and Investment Trusts, Luxembourg SICAVs and Australian Managed Investment Schemes. The top two Morningstar quartiles represent funds in the top half of their category based on total return. On an asset-weighted basis, 79%, 79%, 82% and 82% of total mutual fund AUM were in the top 2 Morningstar quartiles for the 10-year periods ended 31 Dec 2016, 31 Mar 2017, 30 Jun 2017 and 30 Sep 2017, respectively. For the 1-, 3-, 5- and 10-year periods ending 30 Sep 2017, 49%, 60%, 65% and 64% of the 215, 195, 176 and 129 total mutual funds, respectively, were in the top 2 Morningstar quartiles. Analysis based on "primary" share class (Class I Shares, Institutional Shares or that with the longest history for US Trusts and Dublin based; or as defined by Morningstar for other funds). Performance may vary by share class. ETFs and funds not ranked by Morningstar are excluded from the analysis. Capabilities defined by Janus Henderson. Data for periods prior to and including 2Q17 presents the pro forma assets as if the merger had occurred at the beginning of the period shown. © 2017 Morningstar, Inc. All Rights Reserved.

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US$m, except per share data or as noted 3 months ended 30 Sep 2017 30 Jun 2017 30 Sep 2016 Revenue Management fees 477.7 296.0 217.7 Performance fees (2.1) 57.7 9.3 Shareowner servicing fees 30.2 9.9 – Other revenue 31.6 21.2 18.0 Total revenue 537.4 384.8 245.0 Operating expenses Employee compensation and benefits 176.7 123.6 65.7 Long-term incentive plans 50.9 47.3 20.2 Distribution expenses 82.8 60.7 50.7 Investment administration 11.7 9.7 10.9 Marketing 8.1 10.1 2.6 General, administrative and occupancy 54.2 67.3 25.0 Depreciation and amortisation 14.8 9.4 5.8 Total operating expenses 399.2 328.1 180.9 Operating income 138.2 56.7 64.1 Interest expense (4.7) (2.0) (0.5) Investment gains (losses), net 6.1 9.8 (2.0) Other non-operating income (expenses), net 8.7 (2.0) 0.5 Income before taxes 148.3 62.5 62.1 Income tax provision (46.1) (21.0) (8.5) Net income 102.2 41.5 53.6 Net (income) loss attributable to non-controlling interests (2.7) 0.2 (0.2) Net income attributable to JHG 99.5 41.7 53.4 Less: allocation of earnings to participating stock-based awards 2.8 1.1 1.2 Net income attributable to JHG common shareholders 96.7 40.6 52.2 Diluted weighted-average shares outstanding (m) 198.2 143.8 113.8 Diluted EPS 0.49 0.28 0.46 US GAAP: statement of income

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US$m, except per share data 3 months ended 30 Sep 2017 30 Jun 2017 30 Sep 2016 Revenue Management fees 477.7 454.3 444.4 Performance fees (2.1) 52.3 (2.5) Shareowner servicing fees 30.2 29.5 29.1 Other revenue 31.6 30.0 32.9 Total revenue 537.4 566.1 503.9 Operating expenses Employee compensation and benefits 176.7 185.7 153.5 Long-term incentive plans 50.9 61.2 44.4 Distribution expenses 82.8 83.9 84.7 Investment administration 11.7 9.7 10.9 Marketing 8.1 23.2 6.8 General, administrative and occupancy 54.2 98.7 58.6 Depreciation and amortisation 14.8 15.2 15.7 Total operating expenses 399.2 477.6 374.6 Operating income 138.2 88.5 129.3 Interest expense (4.7) (5.1) (4.3) Investment gains (losses), net 6.1 9.9 (0.5) Other non-operating income (expenses), net 8.7 (1.6) 1.5 Income before taxes 148.3 91.7 126.0 Income tax provision (46.1) (31.7) (31.5) Net income 102.2 60.0 94.5 Net (income) attributable to non-controlling interests (2.7) (1.0) (2.1) Net income attributable to JHG 99.5 59.0 92.4 Diluted EPS 0.49 0.29 0.46 Pro forma US GAAP: statement of income Note: Data for periods prior to and including 2Q17 presents pro forma results of JHG as if the merger had occurred at the beginning of the period shown. 3Q16 data has been updated in comparison to information presented in the 2Q17 results presentation on 8 August 2017 to reflect revised long-term incentive plan numbers due to alignment of accounting policies and an adjustment to the accounting treatment under US GAAP.

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3 months ended US$m, except per share data 30 Sep 2017 30 Jun 2017 30 Sep 2016 Reconciliation of revenue to adjusted revenue Revenue 537.4 566.1 503.9 Distribution expenses¹ (82.8) (83.9) (84.7) Adjusted revenue 454.6 482.2 419.2 Reconciliation of operating income to adjusted operating income Operating income 138.2 88.5 129.3 Employee compensation and benefits² 15.3 25.4 0.8 Long-term incentive plans² 2.8 13.2 – Marketing² 0.7 14.4 – General, administrative and occupancy² 4.4 50.2 7.9 Depreciation and amortisation³ 7.0 7.8 7.8 Adjusted operating income 168.4 199.5 145.8 Operating margin4 25.7% 15.6% 25.7% Adjusted operating margin5 37.0% 41.4% 34.8% Alternative performance measures Reconciliation of adjusted financial measures Note: Data for periods prior to and including 2Q17 presents pro forma results of JHG as if the merger had occurred at the beginning of the period shown. Reconciliation to be used in conjunction with slide 26. Footnotes 1 to 5 included on slide 27. 3Q16 data has been updated in comparison to information presented in the 2Q17 results presentation on 8 August 2017 to reflect revised long-term incentive plan numbers due to alignment of accounting policies and an adjustment to the accounting treatment under US GAAP.

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3 months ended US$m, except per share data 30 Sep 2017 30 Jun 2017 30 Sep 2016 Reconciliation of net income to adjusted net income, attributable to JHG Net income attributable to JHG 99.5 59.0 92.4 Employee compensation and benefits² 15.3 25.4 0.8 Long-term incentive plans² 2.8 13.2 – Marketing² 0.7 14.4 – General, administrative and occupancy² 4.4 50.2 7.9 Depreciation and amortisation³ 7.0 7.8 7.8 Interest expense6 1.3 0.7 – Investment gains7 – (10.2) – Other non-operating income (expense)6 (12.7) 2.6 0.5 Income tax provision8 (4.1) (23.3) (1.0) Adjusted net income attributable to JHG 114.2 139.8 108.4 Diluted earnings per share9 0.49 0.29 0.46 Adjusted diluted earnings per share10 0.56 0.68 0.52 Alternative performance measures (cont’d) Reconciliation of adjusted financial measures Note: Reconciliation to be used in conjunction with slide 25. Footnotes 2, 3, 6, 7, 8, 9 and 10 included on slide 27. 3Q16 data has been updated in comparison to information presented in the 2Q17 results presentation on 8 August 2017 to reflect revised long-term incentive plan numbers due to alignment of accounting policies and an adjustment to the accounting treatment under US GAAP.

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Alternative performance measures (cont’d) Footnotes to reconciliation of adjusted financial measures 1 Distribution expenses are paid to financial intermediaries for the distribution of JHG’s investment products. JHG management believes that the deduction of third-party distribution, service and advisory expenses from revenue in the computation of net revenue reflects the nature of these expenses as revenue-sharing activities, as these costs are passed through to external parties that perform functions on behalf of, and distribute, the Group’s managed AUM. 2 Adjustments primarily represent deal and integration costs in relation to the Merger. JHG management believe these costs do not represent the ongoing operations of the Group. 3 Investment management contracts have been identified as a separately identifiable intangible asset arising on the acquisition of subsidiaries and businesses. Such contracts are recognised at the net present value of the expected future cash flows arising from the contracts at the date of acquisition. For segregated mandate contracts, the intangible asset is amortised on a straight-line basis over the expected life of the contracts. JHG Management believes these non-cash and acquisition related costs do not represent the ongoing operations of the Group. 4 Operating income divided by revenue. 5 Adjusted operating income divided by adjusted revenue. 6 Adjustments primarily represent fair value movements on options issued to Dai-ichi and deferred consideration costs associated with acquisitions prior to the Merger. JHG Management believes these costs do not represent the ongoing operations of the Group. 7 Adjustment relates to the gain recognised on disposal of the alternative UK small cap team (‘Volantis team’) on 1 April 2017. JHG management believes this gain does not represent the ongoing operations of the Group. 8 The tax impact of the adjustments is calculated based on the US or foreign statutory tax rate as they relate to each adjustment. Certain adjustments are either not taxable or not tax deductible. 9 Net income attributable to JHG common shareholders divided by weighted-average diluted common shares outstanding. 10 Adjusted net income attributable to JHG common shareholders divided by weighted-average diluted common shares outstanding.

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3.0 Performance fee seasonality Non-US mutual funds 1 Underlying provisions vary on an account by account basis and may impact measurement periods 2 Other includes Offshore Absolute Return, Investment Trusts and Managed CDOs Pay-out timing of AUM subject to performance fees (AUM in US$bn as at 30 Sep 2017) SICAVs Segregated mandates UK OEICs / UTs Private Accounts Other² Quarterly payment Annual payment 34.4 41.2 23.9 35.1 14.2 AUM subject to quarterly performance fees does not change quarter over quarter 20.2 13.5 20.9 US$72bn of AUM (excluding US mutual funds) has the ability to earn performance fees, measured over various periods Due to the wide variety of performance fee structures, non-US mutual fund performance fee revenue can fluctuate on a quarterly basis The measurement period to determine performance fees varies by account c.80% based on a 1 year or shorter measurement periods with the remainder primarily based on a 3 year period¹ Performance fees exist on a wide variety of strategies, but concentrations exist in Absolute Return, Core Plus and Intech’s Global Large Cap Core and Enhanced strategies 0 45 1Q 2Q 3Q 4Q

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3Q17 (US$m) 2Q17 (US$m) 3Q16 (US$m) AUM generating 3Q17 pfees (US$bn) # of funds generating 3Q17 pfees Frequency Timing SICAVs 1.8 29.6 8.6 5.5 2 23 annually; 2 quarterly 23 at June; 2 on quarters Offshore Absolute Return 1.2 2.0 (0.4) 0.3 2 Quarterly / Annually Various Segregated Mandates¹ 0.4 1.5 (0.1) 3.1 3 Quarterly / Annually Various UK OEICs & Unit Trusts – 13.7 (0.3) – – Quarterly Various Investment Trusts 0.7 8.4 1.5 0.6 1 Annually Various Private Accounts 1.9 4.9 0.6 4.9 22 Quarterly / Annually Various US Mutual Funds² (8.1) (7.7) (12.4) 41.9 17 Monthly Monthly Total (2.1) 52.3 (2.5) 56.3 47 Performance fees 3Q17 performance fees impacted by seasonality Note: 2Q17 data presents the results of JHG as if the merger had occurred at the beginning of the period shown. Numbers may not cast due to rounding. 1 Includes Managed CDOs 2 AUM data presents US Mutual Fund AUM subject to performance fees as at 30 Sep 2017. Janus Investment Funds and Janus Aspen Series Portfolios are counted as distinct and separate funds.

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US mutual funds with performance fees 1 The funds listed have a performance-based investment advisory fee that adjusts up or down based on performance relative to a benchmark over 36-month rolling periods. Please see the funds’ Statements of Additional Information for more details and benchmark information. 2 Adjustment of ± 15 bps assumes constant assets and could be higher or lower depending on asset fluctuations 3 The Janus Fund merged into the Research Fund and the Twenty Fund merged into the Forty Fund effective 1 May 2017. For two years, the investment advisory fee will be waived to the lesser of the investment advisory fee rate payable by the surviving fund, or the investment advisory fee rate that the merged fund would have paid if the merger did not occur. 4 Until 1 May 2020, the portion of performance for periods prior to 1 May 2017 will be compared to the Portfolio's former benchmark, the Core Growth Index (50% S&P 500® Index / 50% Russell 1000® Growth Index. Prior to 1 May 2017, the performance fee hurdle was ± 4.5% vs the Core Growth Index. Mutual funds with performance fees¹ AUM 30 Sep 2017 US$m Benchmark Base fee Performance fee2 Performance hurdle vs benchmark 3Q17 P&L impact US$’000 Research Fund³ 12,883 Russell 1000® Growth Index 0.64% ± 15 bps ± 5.00% (2,718) Forty Fund³ and Portfolio 12,118 Russell 1000® Growth Index 0.64% ± 15 bps ± 8.50% (1,852) Mid Cap Value Fund and Portfolio 4,103 Russell Midcap® Value Index 0.64% ± 15 bps ± 4.00% (884) Global Research Fund and Portfolio 3,489 MSCI World IndexSM 0.60% ± 15 bps ± 6.00% (207) Small Cap Value Fund 2,832 Russell 2000® Value Index 0.72% ± 15 bps ± 5.50% 359 Contrarian Fund 2,638 S&P 500® Index 0.64% ± 15 bps ± 7.00% (1,261) Overseas Fund and Portfolio 2,508 MSCI All Country World ex-U.S. IndexSM 0.64% ± 15 bps ± 7.00% (1,145) Research Portfolio4 519 Core Growth Index 0.64% ± 15 bps ± 4.50% (169) Global Value Fund 270 MSCI World IndexSM 0.64% ± 15 bps ± 7.00% (93) Global Real Estate Fund 216 FTSE EPRA / NAREITGlobal Index 0.75% ± 15 bps ± 4.00% (63) Large Cap Value Fund 139 Russell 1000® Value Index 0.64% ± 15 bps ± 3.50% (59) Select Value Fund 109 Russell 3000® Value Index 0.70% ± 15 bps ± 5.00% 28 Asia Equity Fund 39 MSCI All Country Asia ex-Japan IndexSM 0.92% ± 15 bps ± 7.00% 4 Total 41,863 (8,060)

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Adjusted operating expenses – 3Q17 versus 2Q17 (US$m) Operating expenses US$m 3Q17 US GAAP Adj. 3Q17 adjusted 2Q17 adjusted Change 3Q17 adjusted vs 2Q17 adjusted Notes to adjustments Employee compensation and benefits 176.7 (15.3) 161.4 160.3 1% Primarily severance and contractor fees (integration); 1.2m (non-deal) Long-term incentive plans 50.9 (2.8) 48.1 48.0 – 2.1m primarily LTI acceleration (integration); 0.7m (non-deal) Distribution expenses 82.8 (82.8) – – nm Investment administration 11.7 – 11.7 9.7 21% Marketing 8.1 (0.7) 7.4 8.8 (16%) 0.7 US MF proxy and branding (integration) General, administrative and occupancy 54.2 (4.4) 49.8 48.5 3% 4.3 (deal); 0.1 (non-deal) Depreciation and amortisation 14.8 (7.0) 7.8 7.4 5% IMC intangible amortisation (non-deal) Total operating expenses 399.2 (113.0) 286.2 282.7 1% Note: 2Q17 data presents the results of JHG as if the merger had occurred at the beginning of the period shown. See adjusted financial measures reconciliation on slide 25 for additional information. 282.7 286.2 1.1 0.1 2.0 (1.4) 1.3 0.4 2Q17 Compensation and benefits LT incentive plans Investment adminstration Marketing General, admin. and occupancy Depreciation and amortisation 3Q17

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406 Balance sheet At 30 Sep 2017, cash and investment securities totalled US$1,414m compared to outstanding debt of US$406m Cash and investment securities increased 5% as strong cash flow generation was offset by dividend payment and convertible debt repayment Debt declined 8% due to US$33m early conversion notices received from holders of 2018 Convertible Senior Notes, settled in cash for US$50m The Board approved a dividend of US$0.32 per share, to be paid on 1 December to shareholders on record at the close of business on 20 November Strong liquidity position 1,342 Cash and cash equivalent² Investment securities³ 2025 maturity 2018 maturity Balance sheet profile – carrying value (30 June 2017 vs 30 September 2017)1 (US$m) 439 1 Numbers may not cast due to rounding 2 Includes cash and cash equivalents of consolidated variable interest entities of US$43.7m and US$49.6m as at 30 June 2017 and 30 September 2017, respectively 30 Jun 2017 30 Sep 2017 1,414 3 Includes seed investments of US$546.7m (including investment securities of consolidated variable interest entities of US$384.4m), investments related to deferred compensation plans of US$99.2m and other investments of US$12.6m as at 30 June 2017; includes seed investments of US$606.7m (including investment securities of consolidated variable interest entities of US$437.4m), investments related to deferred compensation plans of US$96.3m and other investments of US$10.8m as at 30 September 2017.

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Contacts Investor enquiries John Groneman Head of Investor Relations +44 (0) 20 7818 2106 john.groneman@janushenderson.com Louise Curran Non-US Investor Relations +44 (0) 20 7818 5927 louise.curran@janushenderson.com Jim Kurtz US Investor Relations +1 (303) 336 4529 jim.kurtz@janushenderson.com Investor Relations +44 (0) 20 7818 5310 investor.relations@janushenderson.com Media enquiries Erin Passan North America +1 (303) 394 7681 erin.passan@janushenderson.com Angela Warburton EMEA +44 (0) 20 7818 3010 angela.warburton@janushenderson.com United Kingdom: FTI Consulting Andrew Walton +44 (0) 20 3727 1514 Asia Pacific: Honner Michael Mullane +61 2 28248 3740

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Janus Henderson Investors 201 Bishopsgate, London EC2M 3AE Tel: 020 7818 1818 Fax: 020 7818 1819 Past performance is no guarantee of future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Forward looking information This presentation includes statements concerning potential future events involving Janus Henderson Group plc that could differ materially from the events that actually occur. The differences could be caused by a number of factors including those factors identified in Janus Henderson Group’s Registration Statement, on file with the Securities and Exchange Commission (Commission file no. 333-216824), including those that appear under headings such as “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Many of these factors are beyond the control of the company and its management. Any forward-looking statements contained in this presentation are as of the date on which such statements were made. The company assumes no duty to update them, even if experience, unexpected events, or future changes make it clear that any projected results expressed or implied therein will not be realised. Annualised, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results. No public offer The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. Not all products or services are available in all jurisdictions. Mutual funds in the US distributed by Janus Henderson Distributors. Please consider the charges, risks, expenses and investment objectives carefully before investing. For a US fund prospectus or, if available, a summary prospectus containing this and other information, please contact your investment professional or call 800.668.0434. Read it carefully before you invest or send money. Janus Henderson, Janus, Henderson and Intech are trademarks of Janus Henderson Investors. © Janus Henderson Investors. The name Janus Henderson Investors includes HGI Group Limited, Henderson Global Investors (Brand Management) Sarl and Janus International Holding LLC.

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