Janus Henderson Group plc Reports Second Quarter 2020 Diluted EPS of US$0.55, or US$0.67 on an Adjusted Basis

• Solid long-term investment performance, with 62% and 68% of assets under management (‘AUM’) outperforming relevant benchmarks on a three- and five-year basis, respectively, as at 30 June 2020
• AUM of US$336.7 billion was up 14% compared to the prior quarter, reflecting an improvement in global markets partially offset by net outflows of US$(8.2) billion
• Completed US$22 million of share buybacks during the second quarter
• Board declared quarterly dividend of US$0.36 per share

LONDON--(BUSINESS WIRE)--Janus Henderson Group plc (NYSE/ASX: JHG; ‘JHG’, ‘the Group’) published its second quarter 2020 results for the period ended 30 June 2020.

Second quarter 2020 operating income was US$106.7 million compared to US$(332.4) million in the first quarter 2020 and US$118.5 million in the second quarter 2019. Adjusted operating income, adjusted for one-time, acquisition and transaction related costs, of US$138.4 million compared to US$164.5 million in the first quarter 2020 and US$152.0 million in the second quarter 2019.

Second quarter 2020 diluted earnings per share was US$0.55 compared to US$(1.35) in the first quarter 2020 and US$0.56 in the second quarter 2019. Adjusted diluted earnings per share of US$0.67 increased 12% compared to US$0.60 in the first quarter 2020 and increased 10% versus US$0.61 in the second quarter 2019.

Dick Weil, Chief Executive Officer of Janus Henderson Group plc, stated:

“In the face of the extraordinary challenges resulting from the global COVID-19 pandemic, we have delivered strong financial performance in the second quarter, and our long-term investment performance remains solid.

“Net flows into our Intermediary channel rebounded strongly during the quarter with US$900 million of positive net flows, a 3% annualised organic growth rate; however, the strong progress in this business was offset by outflows across our Institutional channel. Despite these Institutional outflows, we continue to have a strong global pipeline across a diverse set of clients and strategies, and we remain confident in our ability to convert those opportunities into net flows in the quarters to come.

“Looking forward, we are convinced we are on the right path to organic growth and increasing profitability with our strategy of Simple Excellence, and we continue to have a strong focus on costs balanced against appropriate investments to achieve these goals. By continuing to execute on these efforts, we are confident we will be able to deliver for our clients, our owners and our employees, as well as continuing to make positive contributions to the communities in which we operate.”

RESULTS FOR ANNOUNCEMENT TO THE MARKET

These results for announcement to the market include the interim information required to be provided to the Australian Securities Exchange (ASX) under Listing Rule 4.2A and Appendix 4D.

SUMMARY OF FINANCIAL RESULTS (unaudited) (in US$ millions, except per share data or as noted)

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’). However, JHG management evaluates the profitability of the Group and its ongoing operations using additional non-GAAP financial measures. Management uses these performance measures to evaluate the business, and adjusted values are consistent with internal management reporting. See ‘Reconciliation of non-GAAP financial information’ below for additional information.

First half 2020 adjusted revenue of US$856.0 million increased slightly from the first half 2019 result of US$851.8 million, as lower management fees in the first half 2020 were offset by higher performance and shareowner servicing fees. First half 2020 adjusted operating income of US$302.9 million improved from US$295.4 million in the first half 2019, primarily due to the factors impacting adjusted revenue.

Second quarter 2020 adjusted revenue of US$413.3 million decreased from the first quarter 2020 result of US$442.7 million due to lower average AUM, partially offset by higher performance fees and net management fee margin. Second quarter 2020 adjusted net income attributable to JHG of US$126.6 million increased from US$112.7 million in the first quarter 2020, primarily due to an improvement in investment gains (losses), net from the second quarter 2019, driven by fair value adjustments in relation to seeded investment products and derivative instruments.

DIVIDEND AND SHARE BUYBACK

On 28 July 2020, the Board declared a second quarter dividend in respect of the three months ended 30 June 2020 of US$0.36 per share. Shareholders on the register on the record date of 10 August 2020 will be paid the dividend on 26 August 2020. Janus Henderson does not offer a dividend reinvestment plan.

As part of the US$200 million on-market buyback programme approved by the Board in February 2020, JHG purchased approximately 1.1 million of its ordinary shares on the NYSE and its CHESS Depositary Interests (CDIs) on the ASX in the second quarter, for a total outlay of US$22.0 million.

Net tangible assets 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.

AUM AND FLOWS (in US$ billions)

FX reflects movement in AUM resulting from changes in foreign currency rates as non-US$ denominated AUM is translated into US$. Redemptions include impact of client switches.

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¹ Reflects reclassification of an existing fund from Equities to Alternatives.

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 5% of AUM as at 30 June 2020. Capabilities defined by Janus Henderson.

Includes Janus Investment Fund, Janus Aspen Series and Clayton Street Trust (US Trusts), Janus Henderson 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, 74%, 82%, 82%, 86% and 86% of total mutual fund AUM were in the top 2 Morningstar quartiles for the 10-year periods ended 30 June 2019, 30 September 2019, 31 December 2019, 31 March 2020 and 30 June 2020, respectively. For the one-, three-, five- and 10-year periods ending 30 June 2020, 59%, 61%, 62% and 65% of the 200, 192, 183 and 146 total mutual funds, respectively, were in the top 2 Morningstar quartiles.

Analysis based on ‘primary’ share class (Class I Shares, Institutional Shares or share class with longest history for US Trusts; Class A Shares or share class with longest history for Dublin based; primary share class as defined by Morningstar for other funds). Performance may vary by share class. Rankings may be based, in part, on the performance of a predecessor fund or share class and are calculated by Morningstar using a methodology that differs from that used by Janus Henderson. Methodology differences may have a material effect on the return and therefore the ranking. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.

ETFs and funds not ranked by Morningstar are excluded from the analysis. Capabilities defined by Janus Henderson. © 2020 Morningstar, Inc. All Rights Reserved.

THIRD QUARTER 2020 RESULTS

Janus Henderson intends to publish its third quarter 2020 results on 29 October 2020.

SECOND QUARTER 2020 RESULTS BRIEFING INFORMATION

Chief Executive Officer Dick Weil and Chief Financial Officer Roger Thompson will present these results on 29 July 2020 on a conference call and webcast to be held at 8am EDT, 1pm BST, 10pm AEST.

Access to the webcast and accompanying slides will be available via the investor relations section of Janus Henderson’s website (ir.janushenderson.com).

About Janus Henderson

Janus Henderson Group 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, fixed income, quantitative equities, multi-asset and alternative asset class strategies.

At 30 June 2020, Janus Henderson had approximately US$337 billion in assets under management, 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).

Reconciliation of non-GAAP financial information

In addition to financial results reported in accordance with GAAP, we compute certain financial measures using non-GAAP components, as defined by the SEC. These measures are not in accordance with, or a substitute for, GAAP, and our financial measures may be different from non-GAAP financial measures used by other companies. We have provided a reconciliation of our non-GAAP components to the most directly comparable GAAP components. The following are reconciliations of US GAAP revenue, operating expenses, operating income (loss), net income (loss) attributable to JHG and diluted earnings (loss) per share to adjusted revenue, adjusted operating expenses, adjusted operating income, adjusted net income attributable to JHG and adjusted diluted earnings per share.

STATUTORY DISCLOSURES

Associates and joint ventures

At 30 June 2020, 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:

• LongTail Alpha LLC. Ownership 20%

Basis of preparation

In the opinion of management of Janus Henderson Group plc, the condensed consolidated financial statements contain all normal recurring adjustments necessary to fairly present the financial position, results of operations and cash flows of JHG in accordance with US GAAP. Such financial statements have been prepared in accordance with the instructions to Form 10‑Q pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with 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 presented in Janus Henderson Group’s Annual Report on Form 10‑K for the year ended 31 December 2019, on file with the SEC (Commission file no. 001‑38103). Events subsequent to the balance sheet date have been evaluated for inclusion in the financial statements through the issuance date and are included in the notes to the condensed consolidated financial statements.

Investor enquiries: Jim Kurtz US Investor Relations Manager +1 303 336 4529 jim.kurtz@janushenderson.com

Melanie Horton Non-US Investor Relations Manager +44 (0) 20 7818 2905 melanie.horton@janushenderson.com

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Investor Relations investor.relations@janushenderson.com

Media enquiries: Stephen Sobey Head of Media Relations +44 (0) 20 7818 2523 stephen.sobey@janushenderson.com

United Kingdom: FTI Consulting Tom Blackwell +44 (0) 20 3727 1051 tom.blackwell@FTIConsulting.com

Asia Pacific: Honner Craig Morris +61 2 8248 3757 craig@honner.com.au