• Solid long-term investment performance, with 50%, 62%, 74% and 83% of assets under management (‘AUM’) outperforming relevant benchmarks on a one-, three-, five- and 10-year basis, respectively, as at 31 March 2022
  • First quarter 2022 operating income was US$124.6 million; first quarter 2022 adjusted operating income was US$178.8 million
  • Completed US$43 million of share buybacks during the first quarter
  • Board declared 3% increase of quarterly dividend to US$0.39 per share and approved authorisation of US$200 million of buybacks through April 2023
  • Closed the previously announced sale of our Quantitative Equities subsidiary, Intech Investment Management LLC (‘Intech’), on 31 March 2022

LONDON--(BUSINESS WIRE)--Janus Henderson Group plc (NYSE/ASX: JHG; ‘Janus Henderson’, ‘JHG’, ‘the Group’) published its first quarter 2022 results for the period ended 31 March 2022.

First quarter 2022 operating income was US$124.6 million compared to US$157.6 million in the fourth quarter 2021 and US$192.5 million in the first quarter 2021. Adjusted operating income, adjusted for one-time, acquisition and transaction related costs, was US$178.8 million in the first quarter 2022 compared to US$239.7 million in the fourth quarter 2021 and US$201.5 million in the first quarter 2021.

First quarter 2022 diluted earnings per share of US$0.47 compared to US$0.78 in the fourth quarter 2021 and US$0.88 in the first quarter 2021. Adjusted diluted earnings per share of US$0.75 in the first quarter 2022 compared to US$1.05 in the fourth quarter 2021 and compared to US$0.91 in the first quarter 2021.

Roger Thompson, Interim Chief Executive Officer and Chief Financial Officer of Janus Henderson Group plc, stated:

“In an ongoing challenging market environment which is impacting our outlook and flows, our first quarter results reflect solid long-term investment performance, robust financials, although down on the prior quarter, and continued capital return to shareholders. We returned US$107 million through dividends and share buybacks in the first quarter, and we are pleased to announce a 3% dividend increase and a new US$200 million share buyback authorisation to be completed prior to next year’s annual shareholder meeting.

“We are excited to have Ali Dibadj begin as CEO next month, and while we transition to a new CEO, we continue to make progress on delivering our strategic initiatives, including closing the sale of Intech.”

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.

Three months ended

31 Mar

31 Dec

31 Mar

2022

2021

2021

GAAP basis:

Revenue

620.0

697.2

644.0

Operating expenses

495.4

539.6

451.5

Operating income

124.6

157.6

192.5

Operating margin

20.1

%

22.6

%

29.9

%

Net income attributable to JHG

78.7

132.5

155.5

Diluted earnings per share

0.47

0.78

0.88

Adjusted basis:

Revenue

478.2

549.9

516.6

Operating expenses

299.4

310.2

315.1

Operating income

178.8

239.7

201.5

Operating margin

37.4

%

43.6

%

39.0

%

Net income attributable to JHG

125.8

180.1

161.5

Diluted earnings per share

0.75

1.05

0.91

DIVIDEND AND SHARE BUYBACK

On 3 May 2022, the Board declared a first quarter dividend in respect of the three months ended 31 March 2022 of US$0.39 per share. Shareholders on the register on the record date of 16 May 2022 will be paid the dividend on 31 May 2022. 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 July 2021, JHG purchased approximately 1.3 million of its ordinary shares on the New York Stock Exchange (‘NYSE’) and its CHESS Depositary Interests (‘CDIs’) on the Australian Securities Exchange (‘ASX’) in the first quarter, for a total outlay of US$43.3 million.

Additionally, on 3 May 2022, and subject to formally appointing a corporate broker, the Board authorised JHG to commence a new on-market buyback programme, on a date to be determined and announced by JHG. The Group intends to spend up to US$200 million to buy its ordinary shares on the NYSE and its CDIs on the ASX prior to our 2023 Annual General Meeting of Shareholders. Further information regarding the proposed on-market buyback programme will be announced immediately prior to its finalisation and formal launch.

Net tangible assets per share

US$

31 Mar 2022

31 Dec 2021

Net tangible assets / (liabilities) per ordinary share

4.16

4.41

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.

Total Group comparative AUM and flows

Three months ended

31 Mar

31 Dec

31 Mar

2022

2021

2021

Opening AUM

432.3

419.3

401.6

Sales

17.9

19.3

20.7

Redemptions

(29.8

)

(24.5

)

(24.0

)

Net sales / (redemptions)

(11.9

)

(5.2

)

(3.3

)

Market / FX

(31.1

)

18.2

6.8

Reclassifications and disposals1

(28.3

)

—

—

Closing AUM

361.0

432.3

405.1

1

Disposals relate to the sale of Intech, and reclassifications relate to a reclassification of existing funds from Quantitative Equities to Equities.

Quarterly AUM and flows by capability

Total excl

Fixed

Quantitative

Quantitative

Equities

Income

Multi-Asset

Alternatives

Equities

Equities

Total

AUM 31 Mar 2021

224.9

79.5

49.5

9.9

363.8

41.3

405.1

Sales

8.6

5.9

2.4

1.3

18.2

0.2

18.4

Redemptions

(10.5

)

(6.0

)

(1.9

)

(1.0

)

(19.4

)

(1.5

)

(20.9

)

Net sales / (redemptions)

(1.9

)

(0.1

)

0.5

0.3

(1.2

)

(1.3

)

(2.5

)

Market / FX

17.1

1.1

3.2

0.2

21.6

3.4

25.0

AUM 30 Jun 2021

240.1

80.5

53.2

10.4

384.2

43.4

427.6

Sales

7.5

4.7

2.6

1.1

15.9

0.1

16.0

Redemptions

(10.1

)

(4.0

)

(1.8

)

(0.8

)

(16.7

)

(4.5

)

(21.2

)

Net sales / (redemptions)

(2.6

)

0.7

0.8

0.3

(0.8

)

(4.4

)

(5.2

)

Market / FX

(1.3

)

(1.7

)

(0.1

)

(0.1

)

(3.2

)

0.1

(3.1

)

AUM 30 Sep 2021

236.2

79.5

53.9

10.6

380.2

39.1

419.3

Sales

8.1

5.6

4.3

1.2

19.2

0.1

19.3

Redemptions

(11.3

)

(5.5

)

(2.2

)

(1.2

)

(20.2

)

(4.3

)

(24.5

)

Net sales / (redemptions)

(3.2

)

0.1

2.1

—

(1.0

)

(4.2

)

(5.2

)

Market / FX

11.3

—

3.7

0.1

15.1

3.1

18.2

AUM 31 Dec 2021

244.3

79.6

59.7

10.7

394.3

38.0

432.3

Sales

8.5

6.0

2.3

0.9

17.7

0.2

17.9

Redemptions

(12.3

)

(6.0

)

(4.5

)

(1.1

)

(23.9

)

(5.9

)

(29.8

)

Net sales / (redemptions)

(3.8

)

—

(2.2

)

(0.2

)

(6.2

)

(5.7

)

(11.9

)

Market / FX

(20.5

)

(4.1

)

(3.6

)

(0.2

)

(28.4

)

(2.7

)

(31.1

)

Reclassification and disposals1

1.3

—

—

—

1.3

(29.6

)

(28.3

)

AUM 31 Mar 2022

221.3

75.5

53.9

10.3

361.0

—

361.0

1

Disposals relate to the sale of Intech, and reclassifications relate to a reclassification of existing funds from Quantitative Equities to Equities.

Average AUM by capability

Three months ended

31 Mar

31 Dec

31 Mar

2022

2021

2021

Equities

222.9

243.0

223.6

Fixed Income

77.5

79.8

80.9

Multi-Asset

54.5

57.3

48.7

Quantitative Equities

31.2

38.7

41.5

Alternatives

10.6

10.6

10.6

Total

396.7

429.4

405.3

INVESTMENT PERFORMANCE

% of AUM outperforming benchmark (at 31 March 2022)

Capability

1-year

3-year

5-year

10-year

Equities

32

%

44

%

61

%

76

%

Fixed Income

68

%

97

%

96

%

99

%

Multi-Asset

95

%

96

%

96

%

99

%

Alternatives

92

%

100

%

100

%

100

%

Total

50

%

62

%

74

%

83

%

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, ETF-enhanced beta strategies, 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 31 March 2022. Capabilities defined by Janus Henderson.

% of mutual fund AUM in top 2 Morningstar quartiles (at 31 March 2022)

Capability

1-year

3-year

5-year

10-year

Equities

53

%

52

%

68

%

86

%

Fixed Income

47

%

85

%

83

%

83

%

Multi-Asset

97

%

92

%

92

%

99

%

Alternatives

62

%

30

%

75

%

100

%

Total

61

%

63

%

75

%

89

%

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. For the 1-, 3-, 5- and 10-year periods ending 31 March 2022, 51%, 53%, 54% and 66% of the 190, 182, 178 and 149 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. © 2021 Morningstar, Inc. All Rights Reserved.

SECOND QUARTER 2022 RESULTS

Janus Henderson intends to publish its second quarter 2022 results on 28 July 2022.

FIRST QUARTER 2022 RESULTS BRIEFING INFORMATION

Interim Chief Executive Officer and Chief Financial Officer Roger Thompson will present these results on 4 May 2022 on a conference call and webcast to be held at 8am EDT, 1pm BST, 10pm AEST.

Those wishing to participate should call:

United Kingdom

0808 189 6484 (toll free)

United States

844 200 6205 (toll free)

Australia

02 7908 3093 (this is not toll free)

All other countries

+1 929 526 1599 (this is not toll free)

Conference ID

823583

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, multi-asset and alternative asset class strategies.

At 31 March 2022, Janus Henderson had approximately US$361 billion in assets under management, more than 2,000 employees, and offices in 23 cities worldwide. Headquartered in London, the company is listed on the NYSE and the ASX.

FINANCIAL DISCLOSURES

Condensed consolidated statements of comprehensive income (unaudited)

Three months ended

31 Mar

31 Dec

31 Mar

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

2022

2021

2021

Revenue:

Management fees

514.0

565.9

514.9

Performance fees

(8.4

)

7.7

17.0

Shareowner servicing fees

62.4

68.3

60.8

Other revenue

52.0

55.3

51.3

Total revenue

620.0

697.2

644.0

Operating expenses:

Employee compensation and benefits

164.6

160.1

174.6

Long-term incentive plans

51.4

42.7

53.5

Distribution expenses

141.8

147.3

127.4

Investment administration

14.8

12.9

12.6

Marketing

7.4

11.3

6.2

General, administrative and occupancy

73.1

77.6

63.0

Impairment of goodwill and intangible assets

32.8

77.5

3.6

Depreciation and amortisation

9.5

10.2

10.6

Total operating expenses

495.4

539.6

451.5

Operating income

124.6

157.6

192.5

Interest expense

(3.2

)

(3.2

)

(3.2

)

Investment gains (losses), net

(32.2

)

(7.3

)

1.6

Other non-operating income (expense), net

(7.8

)

8.0

(0.1

)

Income before taxes

81.4

155.1

190.8

Income tax provision

(22.8

)

(29.6

)

(43.1

)

Net income

58.6

125.5

147.7

Net loss attributable to noncontrolling interests

20.1

7.0

7.8

Net income attributable to JHG

78.7

132.5

155.5

Less: allocation of earnings to participating stock-based awards

(2.0

)

(3.6

)

(4.8

)

Net income attributable to JHG common shareholders

76.7

128.9

150.7

Basic weighted-average shares outstanding (in millions)

164.0

165.6

171.0

Diluted weighted-average shares outstanding (in millions)

164.5

166.2

171.8

Diluted earnings per share (in US$)

0.47

0.78

0.88

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, net income attributable to JHG and diluted earnings per share to adjusted revenue, adjusted operating expenses, adjusted operating income, adjusted net income attributable to JHG and adjusted diluted earnings per share.

Three months ended

31 Mar

31 Dec

31 Mar

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

2022

2021

2021

Reconciliation of revenue to adjusted revenue

Revenue

620.0

697.2

644.0

Management fees1

(57.0

)

(56.5

)

(46.8

)

Shareowner servicing fees1

(52.2

)

(56.2

)

(50.0

)

Other revenue1

(32.6

)

(34.6

)

(30.6

)

Adjusted revenue

478.2

549.9

516.6

Reconciliation of operating expenses to adjusted operating expenses

Operating expenses

495.4

539.6

451.5

Long-term incentive plans2

(13.0

)

0.1

0.1

Distribution expenses1

(141.8

)

(147.3

)

(127.4

)

General, administration and occupancy2

(6.5

)

(2.6

)

(3.6

)

Impairment of goodwill and intangible assets3

(32.8

)

(77.5

)

(3.6

)

Depreciation and amortisation3

(1.9

)

(2.1

)

(1.9

)

Adjusted operating expenses

299.4

310.2

315.1

Adjusted operating income

178.8

239.7

201.5

Operating margin

20.1

%

22.6

%

29.9

%

Adjusted operating margin

37.4

%

43.6

%

39.0

%

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

Net income attributable to JHG

78.7

132.5

155.5

Long-term incentive plans2

13.0

(0.1

)

(0.1

)

General, administration and occupancy2

6.5

2.6

3.6

Impairment of goodwill and intangible assets3

32.8

77.5

3.6

Depreciation and amortisation3

1.9

2.1

1.9

Investment gains (losses), net4

—

—

0.2

Other non-operating income (expense), net4

7.5

(9.1

)

(1.8

)

Income tax provision5

(14.6

)

(25.4

)

(1.4

)

Adjusted net income attributable to JHG

125.8

180.1

161.5

Less: allocation of earnings to participating stock-based awards

(3.2

)

(5.0

)

(5.0

)

Adjusted net income attributable to JHG common shareholders

122.6

175.1

156.5

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

164.5

166.2

171.8

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

0.47

0.78

0.88

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

0.75

1.05

0.91

1

JHG contracts with third-party intermediaries to distribute and service certain of its investment products. Fees for distribution and servicing related activities are either provided for separately in an investment product’s prospectus or are part of the management fee. Under both arrangements, the fees are collected by JHG and passed through to third-party intermediaries who are responsible for performing the applicable services. The majority of distribution and servicing fees collected by JHG are passed through to third-party intermediaries. JHG management believes that the deduction of distribution and service fees from revenue in the computation of adjusted revenue reflects the pass-through nature of these revenues. In certain arrangements, JHG performs the distribution and servicing activities and retains the applicable fees. Revenues for distribution and servicing activities performed by JHG are not deducted from GAAP revenue.

2

Adjustments for the three months ended 31 March 2022 consist primarily of long-term incentive plan expense associated with accelerated vesting of awards related to the retirement of our CEO and CIO, deal costs associated with the sale of Intech and rent expense for subleased office space. Adjustments for the three months ended 31 March 2021 and 31 December 2021 consist primarily of rent expense for subleased office space. JHG management believes these costs are not representative of 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. In addition, the adjustment for the three months ended 31 March 2022 includes an out-of-period incremental goodwill impairment charge, and the adjustments for the three months ended 31 March 2021 and 31 December 2021 include impairment charges of certain mutual fund investment management agreements and trademarks. JHG management believes these non-cash and acquisition-related costs are not representative of the ongoing operations of the Group.

4

Adjustments primarily represent contingent consideration adjustments associated with prior acquisitions. In addition, the adjustment for the three months ended 31 March 2022 includes a one-time charge related to the sale of Intech. JHG management believes these costs are not representative of the ongoing operations of the Group.

5

The tax impact of the adjustments is calculated based on the applicable US or foreign statutory tax rate as it relates to each adjustment. Certain adjustments are either not taxable or not tax-deductible.

Condensed consolidated balance sheets (unaudited)

31 Mar

31 Dec

(in US$ millions)

2022

2021

Assets:

Cash and cash equivalents

800.8

1,107.3

Investment securities

419.3

451.4

Property, equipment and software, net

54.6

63.3

Intangible assets and goodwill, net

3,805.7

3,917.0

Assets of consolidated variable interest entities

259.6

264.3

Other assets

1,083.3

924.2

Total assets

6,423.3

6,727.5

Liabilities, redeemable noncontrolling interests and equity:

Long-term debt

309.7

310.4

Deferred tax liabilities, net

617.0

619.2

Liabilities of consolidated variable interest entities

2.5

2.6

Other liabilities

839.5

968.7

Redeemable noncontrolling interests

150.7

163.4

Total equity

4,503.9

4,663.2

Total liabilities, redeemable noncontrolling interests and equity

6,423.3

6,727.5

Condensed consolidated statements of cash flows (unaudited)

Three months ended

31 Mar

31 Dec

31 Mar

(in US$ millions)

2022

2021

2021

Cash provided by (used for):

Operating activities

(57.5

)

281.2

25.8

Investing activities

(16.9

)

(17.5

)

23.4

Financing activities

(214.8

)

(90.7

)

(322.5

)

Effect of exchange rate changes

(16.0

)

1.0

1.8

Net change during period

(305.2

)

174.0

(271.5

)

STATUTORY DISCLOSURES

Associates and joint ventures

At 31 March 2022, 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 2021, 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.

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 Annual Report on Form 10‑K for the fiscal year ended 31 December 2021 and in other filings or furnishings made by the Company with the Securities and Exchange Commission from time to time (Commission file no. 001‑38103), including those that appear under headings such as ‘Risk Factors’ and ‘Management’s Discussion and Analysis of Financial Condition and Results of Operations’.

Contacts

Investor enquiries: Jim Kurtz Co-Head Investor Relations (US) +1 303 336 4529 jim.kurtz@janushenderson.com

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

Or Investor Relations investor.relations@janushenderson.com

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

Sarah Johnson Director, Media Relations & Corp Comms +1 720 364 0708 sarah.johnson@janushenderson.com

United Kingdom: Edelman Smithfield Latika Shah +44 (0)7950 671 948 latika.shah@edelmansmithfield.com

Andrew Wilde +44 (0)7786 022 022 andrew.wilde@edelmansmithfield.com

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

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