Janus Henderson Group plc Reports Second Quarter 2022 Results

• Solid long-term investment performance, with 50%, 60%, 65%, and 76% of assets under management (‘AUM’) outperforming relevant benchmarks on a one-, three-, five-, and 10-year basis, respectively, as at 30 June 2022
• AUM decreased 17% to US$299.7 billion compared to the prior quarter, due to challenged global markets, US dollar appreciation, and net outflows
• Net outflows of US$(7.8) billion reflect a significant slowdown in intermediary gross sales and investment underperformance in key strategies
• Second quarter 2022 diluted EPS of US$0.56, or US$0.63 on an adjusted basis
• Completed US$56 million of share buybacks during the second quarter 2022, and Board declared a quarterly dividend of US$0.39 per share

LONDON--(BUSINESS WIRE)--Janus Henderson Group plc (NYSE/ASX: JHG; ‘Janus Henderson’, ‘JHG’, ‘the Group’) published its second quarter 2022 results for the period ended 30 June 2022.

Second quarter 2022 operating income was US$143.9 million compared to US$124.6 million in the first quarter 2022 and US$225.0 million in the second quarter 2021. Adjusted operating income, adjusted for one-time, acquisition and transaction related costs, was US$149.3 million in the second quarter 2022 compared to US$178.8 million in the first quarter 2022 and US$269.3 million in the second quarter 2021.

Second quarter 2022 diluted earnings per share of US$0.56 compared to US$0.47 in the first quarter 2022 and US$0.79 in the second quarter 2021. Adjusted diluted earnings per share of US$0.63 in the second quarter 2022 compared to US$0.75 in the first quarter 2022 and compared to US$1.16 in the second quarter 2021.

Ali Dibadj, Chief Executive Officer of Janus Henderson Group plc, stated:

“I am very pleased to be part of the Janus Henderson team. My first few weeks have reaffirmed my belief in the long-term opportunities ahead. I am excited by the talent, client focus, and strong financial foundation that we already have in place.

“As this quarter illustrates, the difficult market environment, mixed investment performance in a few strategies, and loss of market share demonstrate that we have much work to do at Janus Henderson to deliver consistent organic growth with attractive operating margins. I am working with my team to turn the opportunities we see for Janus Henderson into a strategy with a winning execution plan. The foundation for being a premier, truly global active asset manager is here, but it will take time to deliver the full potential of the Company to our clients, shareholders, employees, and all our stakeholders.”

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.

DIVIDEND AND SHARE BUYBACK

On 27 July 2022, the Board declared a second quarter dividend in respect of the three months ended 30 June 2022 of US$0.39 per share. Shareholders on the register on the record date of 8 August 2022 will be paid the dividend on 24 August 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 May 2022, JHG purchased approximately 2.1 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 second quarter, for a total outlay of US$56 million.

Net tangible assets per share

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

Quarterly AUM and flows by capability

Average AUM by capability

INVESTMENT PERFORMANCE

% of AUM outperforming benchmark (at 30 June 2022)

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. Performance across all time periods excludes Intech, the sale of which was completed 31 March 2022. Excluded assets represent 5% of AUM as at 30 June 2022. Capabilities defined by Janus Henderson.

% of mutual fund AUM in top 2 Morningstar quartiles (at 30 June 2022)

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. Performance across all time periods excludes Intech, the sale of which was completed 31 March 2022. 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 30 June 2022, 55%, 54%, 57%, and 69% of the 186, 179, 174, and 148 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. © 2022 Morningstar, Inc. All Rights Reserved.

THIRD QUARTER 2022 RESULTS

Janus Henderson intends to publish its third quarter 2022 results on 27 October 2022.

SECOND QUARTER 2022 RESULTS BRIEFING INFORMATION

Chief Executive Officer Ali Dibadj and Chief Financial Officer Roger Thompson will present these results on 28 July 2022 on a conference call and webcast to be held at 8am EDT, 1pm BST, 10pm AEST.

Those wishing to participate should call:

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 30 June 2022, Janus Henderson had approximately US$300 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)

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.

Condensed consolidated balance sheets (unaudited)

Condensed consolidated statements of cash flows (unaudited)

STATUTORY DISCLOSURES

Associates and joint ventures

At 30 June 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.

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