Change Q1 2023 vs Q4 2022 Q1 2022 | --- | --- | --- | --- | --- | --- | |----------------------------------------------|--------|-------|--------|-------|----------| | Revenue \nManagement fees | 414.6 | 405.6 | 2% | 514.0 | (19%) | | Performance fees | (14.9) | 14.3 | nm | (8.4) | (77%) | | Shareowner servicing fees | 51.5 | 51.3 | 0% | 62.4 | (17%) | | Other revenue | 44.6 | 44.0 | 1% | 52.0 | (14%) | | Total revenue | 495.8 | 515.2 | (4%) | 620.0 | (20%) | | Operating expenses | | | | | | | Employee comp ...

Revenue Performance - Revenue for Q1 2023 was $495.8 million, a decrease of $124.2 million, or 20%, compared to Q1 2022[87]. - Total revenue for Q1 2023 was $495.8 million, a decrease of 20% compared to $620.0 million in Q1 2022, primarily driven by a decline in management fees[108]. - Adjusted revenue for Q1 2023 was $383.8 million, compared to $478.2 million in Q1 2022, reflecting a decline of 19.8%[131]. Assets Under Management (AUM) - Average Assets Under Management (AUM) increased to $310.5 billion, up 8.1% from December 31, 2022, driven by market performance and net inflows[91]. - Total Assets Under Management (AUM) increased from $287.3 billion as of March 31, 2022, to $310.5 billion as of March 31, 2023, representing an increase of 8%[101]. - Average AUM decreased by 23% from $396.7 billion in Q1 2022 to $304.5 billion in Q1 2023, with equities down 17%, fixed income down 18%, and multi-asset down 15%[100]. - Approximately 31.4% of AUM was non-USD-denominated, with a $1.3 billion increase in AUM due to currency fluctuations during Q1 2023[92]. Net Inflows and Investment Performance - Net inflows for Q1 2023 were $5.5 billion, reflecting mandate wins from institutional clients across various investment strategies[87]. - The total percentage of AUM outperforming benchmarks over 1 year was 67%, with alternatives showing a 69% outperformance[90]. - AUM performance by capability showed 94% of Multi-Asset AUM outperformed benchmarks over three years[90]. - Investment performance showed that 94% of Multi-Asset AUM outperformed benchmarks over 3 years[90]. Operating Income and Expenses - Operating income for Q1 2023 was $100.4 million, a decrease of $57.0 million, or 36%, compared to Q1 2022, with an operating margin of 20.3%[89]. - Total operating expenses for Q1 2023 were $395.4 million, a decrease of $67.2 million, or 15%, compared to Q1 2022[87]. - Operating expenses decreased by 15% from $462.6 million in Q1 2022 to $395.4 million in Q1 2023, with significant reductions in employee compensation and distribution expenses[114]. - Employee compensation and benefits decreased by $24.3 million, primarily due to a reduction in variable compensation and lower headcount[115]. Earnings and Dividends - Diluted earnings per share for Q1 2023 were $0.53, or $0.55 on an adjusted basis[87]. - The Board of Directors declared a $0.39 per share dividend for Q1 2023, to be paid on May 31, 2023[141]. - Adjusted diluted earnings per share decreased from $0.75 in Q1 2022 to $0.55 in Q1 2023[131]. - Net income attributable to JHG for Q1 2023 was $87.4 million, a decrease of $16.2 million, or 16%, compared to Q1 2022[90]. Cash Flow and Financial Position - Cash and cash equivalents decreased from $1,156.5 million as of December 31, 2022, to $829.4 million as of March 31, 2023[135]. - Cash flows from operating activities for Q1 2023 were $(108.2) million, compared to $(57.5) million in Q1 2022[148]. - Cash used for investing activities in Q1 2023 was $(235.1) million, compared to $(16.9) million in Q1 2022[150]. - The company has a $200 million Credit Facility with an option to increase borrowing capacity by an additional $50 million, maturing on February 16, 2024[146]. Tax and Regulatory Compliance - The effective tax rate decreased from 26.8% in Q1 2022 to 21.3% in Q1 2023[125]. - The combined capital requirement for the FCA-supervised regulatory group is £204.2 million ($252.5 million), with £211.9 million ($262.0 million) of capital above the requirement as of March 31, 2023[138]. Other Financial Metrics - Performance fees fell from $8.4 million in Q1 2022 to a loss of $14.9 million in Q1 2023, a decrease of 77%[110]. - Shareowner servicing fees decreased by 17% to $51.5 million, driven by a decline in average AUM[112]. - Investment gains (losses), net improved by $49.8 million, moving from a loss of $32.2 million in Q1 2022 to a gain of $17.6 million in Q1 2023[122]. - The company anticipates achieving approximately $40 million to $45 million in gross-cost efficiencies while investing in business growth initiatives[128].

Financial Performance - For the year ended December 31, 2022, JHG reported revenue of $2,203.6 million, down 20.4% from $2,767.0 million in 2021[20]. - Operating income for 2022 was $489.8 million, resulting in an operating margin of 22.2%, compared to 29.7% in 2021[20]. - Net income attributable to JHG for 2022 was $372.4 million, a decline of 40% from $620.0 million in 2021[20]. - Revenue for the year ended December 31, 2022, was $2,203.6 million, a decrease of $563.4 million, or 20%, compared to 2021[193]. - Total operating expenses for 2022 were $1,713.8 million, a decline of $232.3 million, or 12%, compared to 2021[196]. - Operating income for 2022 was $489.8 million, a decrease of $331.1 million, or 40%, compared to 2021[196]. - Diluted earnings per share for 2022 was $2.23, or $2.60 on an adjusted basis[193]. Assets Under Management (AUM) - As of December 31, 2022, Janus Henderson Group plc (JHG) had assets under management (AUM) of $287.3 billion, a decrease from $2,767.0 million in 2021[14][20]. - Closing Assets Under Management (AUM) as of December 31, 2022, was $287.3 billion, down from $432.3 billion in 2021, representing a decrease of 33.5%[207]. - AUM in the self-directed channel totaled $64.3 billion, representing 22% of total AUM[24]. - Institutional channel AUM was $61.0 billion, making up 21% of total AUM[25]. - JHG's equity strategies had AUM of $171.3 billion, which is 59% of total AUM[26]. - Approximately 32% of AUM was non-USD-denominated, with a $11.9 billion decrease in AUM due to USD appreciation against GBP, EUR, and AUD[199]. - Average AUM for 2022 was $328.8 billion, a decrease of 22% compared to $422.0 billion in 2021[210]. - The Equities segment saw a decline in average AUM of 18% from $236.4 billion in 2021 to $193.2 billion in 2022[210]. - Fixed Income average AUM decreased by 17% from $80.6 billion in 2021 to $67.2 billion in 2022[210]. - Multi-Asset average AUM decreased by 8% from $53.2 billion in 2021 to $49.2 billion in 2022[210]. - Quantitative Equities experienced a significant decline of 81% in average AUM, dropping from $41.3 billion in 2021 to $7.7 billion in 2022[210]. - Institutional client type AUM decreased from $127.2 billion in 2021 to $61.0 billion in 2022, reflecting a significant drop[207]. - Intermediary client type AUM fell from $215.0 billion in 2021 to $162.0 billion in 2022, a decrease of 24.7%[207]. - Net outflows totaled $36.5 billion, reflecting market uncertainty and investment underperformance in key strategies[194]. Market and Operational Risks - The company’s revenue is primarily dependent on the value and performance of its Assets Under Management (AUM), which can fluctuate due to external factors[89]. - A decline in equity and fixed income markets could significantly reduce the company's AUM and revenue[90]. - Poor investment performance compared to benchmarks may lead to decreased sales and increased redemptions, adversely affecting revenue and net income[90]. - The company faces risks from market volatility, which can impact AUM, revenues, and overall financial results[92]. - Illiquidity in certain securities may impede the company's ability to effect redemptions, negatively impacting investment performance and AUM[95]. - The company is subject to foreign currency exchange risk, generating a substantial portion of revenue in GBP, EUR, and AUD, which may adversely affect financial results[104]. - The investment management business is highly competitive, with fee structures facing downward pressure due to the rise of lower-cost investment products[106]. - The company’s financial performance could be negatively affected by the loss of key personnel, impacting client retention and revenue generation[109]. - The company relies on third-party distribution channels, and any adverse changes in these relationships could affect AUM and financial condition[110]. - The company’s revenue is derived from investment management agreements that are subject to termination or non-renewal, which could materially impact AUM and results[122]. - The company faces risks from market-specific political, economic, and other factors that may adversely impact revenue generated overseas[111]. - The company’s operational results are dependent on expense levels, which can fluctuate significantly[123]. - The company’s reputation is critical to its success, and any harm could lead to reduced AUM and negatively impact revenue and net income[115]. - The company faces operational risks related to cybersecurity, including potential breaches that could lead to loss of confidential information and increased costs[129]. - Changes in operating expenses are influenced by market conditions, regulatory changes, and variations in total compensation expenses, which may affect profitability[126]. - The company is highly dependent on third-party vendors for critical services, and any failure in these services could adversely impact operations and financial results[137]. - Regulatory scrutiny has increased, with potential legal and compliance costs that could negatively affect the company's AUM and profitability[142]. - The company may face higher borrowing costs and difficulties accessing capital markets due to changes in credit ratings and global market volatility[140]. - Increased regulatory capital requirements could restrict the company's ability to return capital to shareholders or make acquisitions, impacting financial condition[151]. - The regulatory environment is evolving, with new laws potentially increasing compliance costs and impacting the way the company conducts business[145]. - Cybersecurity and data privacy are high priorities for regulators, and failure to comply could result in investigations and penalties[131]. - The company maintains insurance coverage for cyber risks, but there is no guarantee that all losses will be covered or that coverage will remain cost-effective[135]. Diversity, Equity, and Inclusion (DEI) - 38% of employees globally are women, and 24% are ethnically diverse, with an increase in ethnically diverse employees from 22% to 24%[44]. - The company achieved a DEI Employee Engagement score of 85%, which is 2% higher than the 75th percentile New Measures industry benchmark[44]. - The company has increased the number of employees identifying as having a disability from 5% to 7%[44]. - The company improved its gender pay gap over the past several years[44]. - The company has moved to a Disability Confident Level II employer status[44]. - The company has launched Global Diversity Awareness Month to promote inclusivity[44]. - The company has developed talent profiles and succession plans to manage turnover effectively[48]. - The company provides contributions toward retirement and pension schemes to support employees' financial goals[47]. Corporate Actions - On February 1, 2023, the Board declared a cash dividend of $0.39 per share, payable on February 28, 2023[177]. - The company approved a share buyback program of up to $200 million, which commenced in May 2022, but no shares were repurchased during the three months ended December 31, 2022[184]. - Share Plans Repurchases totaled 3,522,981 shares at an average price of $30.85 during the year ended December 31, 2022[185]. - The company acquired 3.3 million shares of its common stock for $98.9 million as part of the share buyback program[194]. Regulatory and Compliance Issues - The UK and EU's transition period ended on December 31, 2020, resulting in UK firms losing their passporting rights to provide services across the EEA[71]. - Janus Henderson Investors Europe S.A. operates six branches in Europe, focusing on distributing JHG Group products within the EU[73]. - Janus Henderson Investors (Singapore) Limited is licensed by the Monetary Authority of Singapore to conduct regulated activities in fund management and capital market products[75]. - The company has several subsidiaries in Australia operating under an Australian Financial Services License, governed by the Corporations Act 2001[76]. - The company manages two UCITS umbrella funds and one AIF incorporated under Luxembourg law, among other fund structures[77]. - The company may incur additional costs due to the UK's exit from the EU, affecting its operations and financial condition[156]. - The transition from LIBOR to alternative benchmark rates like SOFR and SONIA may introduce financial and operational risks[159]. - Changes in tax laws could materially impact the company's tax provision and effective tax rate[165]. - The company faces legal risks related to the suitability of its investment products, which could lead to regulatory investigations and reputational damage[162]. - The company has a diverse international customer base, but reduced UK economic growth could adversely affect its results[157]. - The company is subject to potential claims regarding the suitability of funds managed, which could impact its financial condition[162].

Janus Henderson Group plc (NYSE:JHG) Q4 2022 Results Conference Call February 2, 2023 8:00 AM ET Company Participants Ali Dibadj - CEO Roger Thompson - CFO Conference Call Participants Craig Siegenthaler - Bank of America Patrick Davitt - Autonomous Research Ed Henning - CLSA Ken Worthington - JPMorgan Alex Blostein - Goldman Sachs Elizabeth Miliatis - Jarden Bill Katz - Credit Suisse Nigel Pittaway - Citi Operator Good morning. My name is Emily, and I will be your conference facilitator today. Thank you fo ...

Revenue and Income - Revenue for Q3 2022 was $512.9 million, a decrease of $174.5 million, or 25% compared to Q3 2021[104] - Net income attributable to the company in Q3 2022 was $107.6 million, a decrease of $89.2 million, or 45% compared to Q3 2021[106] - Total revenue for the nine months ended September 30, 2022, was $1,688.4 million, down 18% from $2,069.8 million in the same period of 2021[126] - Adjusted revenue for the three months ended September 30, 2022, was $394.2 million, down from $545.3 million in the same period of 2021[160] Assets Under Management (AUM) - Assets Under Management (AUM) decreased to $274.6 billion, down 8% from June 30, 2022, primarily due to market challenges and net outflows of $5.8 billion[104] - AUM as of September 30, 2022, decreased by $157.7 billion, or 36%, from December 31, 2021, due to negative market movements and net redemptions[108] - As of September 30, 2022, the total Closing Assets Under Management (AUM) decreased to $274.6 billion from $419.3 billion as of September 30, 2021, representing a decline of approximately 35%[118] - The company experienced net outflows of $71.2 billion in the nine months ended September 30, 2022, compared to net sales of $45.7 billion in the same period of 2021[113] Operating Expenses - Total operating expenses for Q3 2022 were $392.2 million, a decrease of $46.9 million, or 11% compared to Q3 2021[105] - Total operating expenses for the three months ended September 30, 2022, were $392.2 million, a decrease of 11% compared to the same period in 2021[134] - Employee compensation and benefits decreased by $23.7 million for the three months ended September 30, 2022, primarily due to a reduction in variable compensation[135] - Distribution expenses decreased by $23.4 million and $18.5 million for the three and nine months ended September 30, 2022, respectively, due to a decline in average AUM[139] Management and Performance Fees - Management fees for the three months ended September 30, 2022, were $426.2 million, a decrease of 24% from $564.5 million in the same period of 2021, primarily due to lower average AUM[126] - Performance fees for the nine months ended September 30, 2022, were negative $25.0 million, compared to positive $95.0 million in the same period of 2021, indicating a significant decline in performance-related income[126] - Performance fees for the three months ended September 30, 2022, decreased by $13.2 million, primarily due to negative performance fees from U.S. mutual funds[129] - For the nine months ended September 30, 2022, performance fees decreased by $120.0 million, mainly due to declines in SICAV and UK OEICs, as well as increased negative performance fees from U.S. mutual funds[130] Cash and Financing - The company had over $1.0 billion in cash and cash equivalents as of Q3 2022[104] - Cash provided by operating activities in Q3 2022 was $221.9 million, with a cash balance at the end of the period of $1,035.7 million[104] - Cash inflows from investing activities were $111.0 million during the nine months ended September 30, 2022, compared to cash outflows of $265.8 million in the same period of 2021[179] - The company has a new share buyback program authorized for up to $200 million, but no shares were repurchased during the three months ended September 30, 2022[167] Market Conditions and Outlook - Market impacts contributed to a decrease of $85.7 billion in AUM due to unfavorable market conditions[113] - Future outlook remains cautious due to market volatility, with strategic adjustments planned to mitigate risks and capitalize on growth opportunities[113] - The company is focusing on market expansion and new product development to enhance AUM recovery in the upcoming quarters[113] Tax and Impairment - The effective tax rate for the three months ended September 30, 2022, was 19.6%, compared to 21.0% for the same period in 2021[152] - Goodwill and intangible asset impairment charges decreased by $44.4 million during the nine months ended September 30, 2022, compared to the same period in 2021[144] - The effective tax rate for the nine months ended September 30, 2022, was impacted by a decrease in pre-tax book income and an increase in disallowed noncontrolling interest loss[153] Currency and Foreign Exchange - Approximately 31% of AUM was non-USD denominated as of September 30, 2022[109] - The foreign exchange impact on AUM was noted, reflecting changes in currency rates affecting non-USD-denominated AUM[114] - The impact of foreign exchange (FX) on AUM was noted, with non-USD-denominated AUM being translated into USD, affecting the overall figures[114]

Ja THIRD QUARTER 2022 RESULTS Thursday 27 October 2022 Ali Dibadj Chief Executive Officer Roger Thompson Chief Financial Officer Q3 2022 RESULTS Q3 2022 Q2 2022 Long-term investment performance remains solid AUM decreased 8% due to markets, FX, and net outflows US GAAP diluted EPS of US$0.65 and adjusted diluted EPS of US$0.61 Declared US$0.39 per share dividend Key metrics – Q3 2022 vs Q2 2022 | --- | --- | --- | |-----------------------------------|------------|------------| | 3-year investment outperform ...

Financial Data and Key Metrics Changes - The company reported a decrease in adjusted revenue of 8% compared to the prior quarter, primarily due to lower average AUM [24] - Adjusted operating income for the third quarter was $125 million, down 16% from the prior quarter, driven by lower average assets [28] - Adjusted diluted EPS was $0.61 [28] Business Line Data and Key Metrics Changes - Net outflows for the quarter were $5.8 billion, an improvement from $7.8 billion in the previous quarter [14] - Equity net outflows were $4.1 billion, down from $5.8 billion in the second quarter, driven by global technology strategies [20] - Fixed income net outflows were $1.2 billion, reflecting a $900 million institutional redemption [21] Market Data and Key Metrics Changes - The company experienced approximately $2.6 billion in net outflows from the institutional channel, primarily driven by the EMEA region [17] - The APAC region saw $800 million in positive net inflows, including $500 million from an Asian client [18] - The US intermediary channel had net outflows of $2.5 billion, an improvement from $5.7 billion in the second quarter [15] Company Strategy and Development Direction - The company aims to protect and grow its core businesses, amplify strengths, and diversify where clients provide the right to win [37] - A strategic framework was established to identify opportunities for organic growth and attractive operating margins [39] - The company plans to invest in areas such as product offerings, branding, and organizational structure to capture market share [47] Management's Comments on Operating Environment and Future Outlook - The management noted that market conditions remain difficult due to tightening monetary policy, inflation, and geopolitical tensions [6] - The company expects management fees to be lower in the fourth quarter due to significantly lower closing AUM compared to year-to-date average AUM [29] - Management expressed confidence in the potential for long-term success despite current challenges, emphasizing the importance of client service and investment acumen [60] Other Important Information - The company identified $40 million to $45 million in gross run rate cost efficiencies, with plans to reinvest most of these savings back into the business [32] - Cash and cash equivalents were approximately $1 billion as of September 30, an increase of $170 million [34] - The Board declared a $0.39 per share dividend to be paid on November 23 [35] Q&A Session Summary Question: Follow-up on expense initiatives - Management discussed $40 million to $45 million in gross savings, with a focus on not disrupting client services or regulatory obligations [65][66] Question: Protect and grow strategy in the US intermediary channel - Management acknowledged losing market share and emphasized the need for a more focused approach to improve relationships and sales [71][74] Question: Cash balance and M&A opportunities - Management confirmed a strong balance sheet with room for M&A, while emphasizing a disciplined approach to potential acquisitions [80] Question: UK domiciled AUM and impact of liquidity needs - Management indicated that approximately $500 million of outflows were related to clients requiring cash for collateral calls, with total UK pension AUM around $10 billion [81][82] Question: Strategy changes and their significance - Management acknowledged that the strategy is more evolutionary than revolutionary, focusing on improving existing capabilities and client service [87][88] Question: FX hedging and its impact - Management explained that the P&L is relatively naturally hedged, with a slight short position in non-US dollars [97][98] Question: Marketing and admin spend reductions - Management attributed lower marketing and admin spend to cost control measures and a careful approach to spending in a challenging market [103][104]

Janus Henderson Group plc (NYSE:JHG) Q2 2022 Results Conference Call July 28, 2022 8:00 AM ET Company Participants Ali Dibadj - CEO Roger Thompson - CFO Conference Call Participants Dan Fannon - Jefferies Elizabeth Miliatis - Jarden Ken Worthington - JPMorgan Brian Bedell - Deutsche Bank Ed Henning - CLSA Andrei Stadnik - Morgan Stanley Patrick Davitt - Autonomous Research John Dunn - Evercore ISI Operator Good morning. My name is Harry and I'll be your conference facilitator today. Thank you for standing b ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from to Commission File Number 001-38103 JANUS HENDERSON GROUP PLC (Exact name of registrant as specified in its charter) Jersey, Channel Islands (State or other jurisdiction ...

Financial Data and Key Metrics Changes - Adjusted revenue in Q1 2022 decreased by 13% compared to the prior quarter due to lower average AUM and performance fees [26] - Adjusted operating income in Q1 2022 was $180 million, down 25% over the prior quarter, primarily driven by lower revenue [26] - First quarter adjusted operating margin was 37.4% [26] - Cash and cash equivalents decreased by approximately $324 million to $782 million as of March 31, 2022, primarily due to the payment of annual variable compensation [35] Business Line Data and Key Metrics Changes - Net outflows excluding Intech were $6.2 billion in Q1 2022, compared to $1 billion in the prior quarter, driven primarily by outflows in equities and institutional redemptions [16][11] - Equity net outflows for Q1 2022 were $3.8 billion, compared to $3.2 billion in the prior quarter [21] - Flows into fixed income were flat in the quarter, which is considered a good result against a tough backdrop for bonds [22] - Total net outflows for multi-asset were $2.2 billion, entirely due to a one-off redemption in the balanced strategy [22] Market Data and Key Metrics Changes - In the US, intermediary flows were negative, with $1.7 billion in net outflows, while Asia Pacific saw positive flows [17] - Institutional outflows were $3.6 billion, primarily due to a $2.2 billion redemption of the balanced strategy [19] - The SMA channel in the US had $800 million of net inflows, primarily from the concentrated growth strategy [18] Company Strategy and Development Direction - The company is focused on organic growth and has completed the sale of Intech, which is expected to streamline operations [8][12] - The active ETF franchise continues to grow, with assets exceeding $5 billion [9] - The company is committed to returning excess cash to shareholders, with a new buyback authorization of $200 million [12][36] - The firm is investing in sustainable products and has expanded its ESG team significantly [107][110] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment due to market conditions and geopolitical factors, such as the Russian invasion of Ukraine [19] - The outlook for performance fees in 2022 is negative, with expectations of approximately negative $60 million for US mutual fund performance fees [30] - Management remains optimistic about the institutional pipeline, despite recent outflows, and is focused on stabilizing the platform [44][56] Other Important Information - The company announced a $0.01 increase in the quarterly dividend to $0.39 per share, aligning with its progressive dividend policy [12][36] - The firm is cautious about leveraging its balance sheet and aims to maintain flexibility for future opportunities [62] Q&A Session Summary Question: Follow-up on flows and institutional pipeline - Management clarified that the $7.3 billion mandate will be redeemed throughout 2022, with $2 billion already redeemed in April [40] - The real estate transaction is expected to impact Q2 results positively [41] Question: Cost management and capital management - Management confirmed that the capital management philosophy remains consistent, with a focus on progressive dividends and share buybacks [49] - There is an expectation of higher non-comp costs due to a return to normal operations post-COVID [50] Question: Institutional business outlook post-Intech sale - The institutional business, excluding Intech, remains sizable at $82 billion and is well diversified [56] - Management is focused on building client relationships and enhancing product offerings [56] Question: Performance fee outlook - Management expects Q2 performance fees to be significantly weaker than the previous year due to current performance trends [84] Question: Acquisition appetite for growth - Management emphasized maximizing existing capabilities before considering acquisitions, focusing on investment capabilities rather than distribution [80] Question: ESG product development - The company is investing heavily in ESG initiatives and has launched several sustainable products, with a significant increase in the ESG team [107][110]