First Quarter 2020 Results Marty Flanagan President and Chief - PowerPoint PPT Presentation

First Quarter 2020 Results Marty Flanagan President and Chief Executive Officer Loren Starr Chief Financial Officer April 23, 2020

Forward-looking statements and Important Information This presentation, and comments made in the associated www.sec.gov. We expressly disclaim any obligation to update the conference call today, may include “forward-looking statements.” information in any public disclosure if any forward-looking Forward-looking statements include information concerning future statement later turns out to be inaccurate. results of our operations, expenses, earnings, liquidity, cash flow This presentation includes the following non-GAAP performance and capital expenditures, industry or market conditions, AUM, measures: net revenue (and by calculation, net revenue yield on geopolitical events, the COVID-19 pandemic and their potential AUM), adjusted operating income, adjusted operating margin, impact on the company, acquisitions and divestitures, debt and our adjusted net income attributable to Invesco Ltd., and adjusted ability to obtain additional financing or make payments, regulatory diluted earnings per share (EPS). We believe the adjusted developments, demand for and pricing of our products and other measures provide valuable insight into our ongoing operational aspects of our business or general economic conditions. In performance and assist in comparisons to our competitors. These addition, words such as “believes,” “expects,” “anticipates,” measures also assist management with the establishment of “intends,” “plans,” “estimates,” “projects,” “forecasts,” and future or operational budgets and forecasts and assist the Board of Directors conditional verbs such as “will,” “may,” “could,” “should,” and and management in determining incentive compensation decisions. “would” as well as any other statement that necessarily depends on The most directly comparable U.S. GAAP measures are operating future events, are intended to identify forward-looking statements. revenues (and by calculation, gross revenue yield on AUM), None of this information should be considered in isolation from, or operating income, operating margin, net income attributable to as a substitute for, historical financial statements. Important risk Invesco Ltd., and diluted EPS. The operating metrics are presented factors related to the acquisition of OppenheimerFunds could cause for projection purposes only and are presented consistently with actual future results and other future events to differ materially from Invesco’s non-GAAP management reporting approach. those currently estimated by management, including, but not limited The information in this presentation is meant to supplement the to: the ability to achieve the synergies and value creation information contained in the earnings release and includes a more contemplated; Invesco’s ability to promptly and effectively integrate detailed reconciliation format of the income statement from U.S. OppenheimerFunds’ businesses; and the diversion of and attention GAAP to a non-GAAP presentation. We believe that this of management on transaction-related issues. presentation is useful, as it aggregates the various non-GAAP Forward-looking statements are not guarantees, and they involve adjustments to illustrate adjusted revenue and expense categories risks, uncertainties and assumptions. There can be no assurance and allows more transparency into the calculation of the non-GAAP that actual results will not differ materially from our expectations. financial measures. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our most recent Form 10-K and subsequent Forms 10-Q, filed with the Securities and Exchange Commission. You may obtain these reports from the SEC’s website at | 2

Introduction Protecting employees & taking care of clients through the crisis • Our focus on taking care of employees and the strength of our client relationships resulted in stable flows and strong operating results during a challenging time Committed to our global client-centric platform & conviction in our long-term strategy • Our diversified global platform is aligned with all key growth areas and tailwinds and positions us to compete and win in the future growth of our industry Preserving our financial strength and flexibility through immediate actions to navigate an uncertain environment • Taking prudent steps to increase our operating flexibility and strengthen our liquidity position | 3

First quarter 2020 highlights • 57%, 54%, 60% and 69% of actively managed assets in top half of peer group on a 1-, 3-, 5-, Investment and 10-year basis Performance • Strong performance in capabilities where we expect future strong demand from clients globally-- Global and EM Equities, Global Fixed Income, Asian Equities, and Alternatives AUM and Net March 31, 2020 AUM of $1,053.4 billion compared to $1,226.2 billion at December 31 • Revenue Yield 1 Average AUM remained largely flat at $1,176.3 billion compared to $1,200.6 billion the prior • quarter Net revenue yield of 39.0 bps (ex-performance fees 38.7 bps) driven by mix shift • Total net outflows of $2.1 billion, versus net outflows of $20.4 billion for the fourth quarter, Flows • reflecting inflows of $26.3 billion into money market Record gross long-term inflows of $84.7B, up 39.5% versus Q4’19 and up 57.4% versus Q1’19 • Long-term net outflows of $19.1 billion, versus long-term net outflows of $14.0 billion for the • fourth quarter, largely driven by retail outflows in the Americas and UK Strength in diverse areas delivering long-term inflows, including: $11.2 billion in our Institutional • business; $0.9 billion in China JV; $3.1 billion in Fixed Income; $2.1 billion in EMEA ETFs Net revenues down 9.6% to $1,145.8 million from $1,267.8 million Overall Adjusted • Adjusted operating income of $412.7 million compared to $505.5 million in prior quarter Operating • Adjusted operating margin decreased to 36.0% in the quarter from 39.9% Results 1 • Adjusted diluted EPS decreased to $0.34 versus $0.64 in the prior quarter, with $0.14 of the • decline driven by non-operating items, primarily mark-to-market losses on seed capital and elevated tax rate Returned $172.4 million to common shareholders through dividends and buybacks Capital Mgmt. • Ongoing focus on building liquidity and strategic flexibility: lowering common dividend to $0.155 & Balance Sheet • Deepening MassMutual partnership, including recent approval of $425 million in capital for • alternative strategies Ample liquidity will give us enhanced capacity to optimize our balance sheet and continue to • invest in our business for growth (1) Non-GAAP financial measures – For the reconciliations from US GAAP to non-GAAP measures, see the Appendix to this presentation and the Non-GAAP Information and Reconciliations section of | 4 the current earnings release. Additional detailed information and disclosures may be found in prior period Forms 10-K, 10-Q, and 8-K.

Investment performance % of Actively Managed Assets in Top Half of Peer Group Global & Overall US Equity Fixed Income Alternatives Balanced Int’l Equity 100% 90% 13% 80% 11% 70% 14% 15% 60% 19% 27% 18% 20% 50% 28% 17% 15% 22% 11% 40% 76% 13% 74% 71% 56% 60% 65% 34% 30% 47% 37% 50% 41% 46% 37% 42% 20% 37% 35% 22% 31% 30% 4% 29% 6% 10% 8% 11% 15% 13% 8% 1% 1% 7% 6% 6% 5% 2% 0% 1YR 3YR 5YR 10YR 1YR 3YR 5YR 10YR 1YR 3YR 5YR 10YR 1YR 3YR 5YR 10YR 1YR 3YR 5YR 10YR 1YR 3YR 5YR 10YR 1st Quartile 2nd Quartile Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary funds, unit investment trusts, fund of funds with component funds managed by Invesco, stable value building block funds and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Data as of 3/31/2020. Includes AUM of $602.2 billion (57% of total IVZ) for 1 year, $595.7 billion (57% of total IVZ) for three year, $589.7 billion (56% of total IVZ) for 5 year and $532.3 billion (51% of total IVZ) for ten year. Peer group rankings are sourced from a widely-used third party ranking agency in each fund’s market (Lipper, Morningstar, IA, Russell, Mercer, eVestment Alliance, SITCA, Value Research) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings are calculated against all funds in each peer group. Rankings for the primary share class of the most representative fund in each composite are applied to all products within each composite. Performance assumes the | 5 reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience.

Assets under management Q1’19 Q4'19 Q1’20 % of Total Firm AUM Total AUM by Investment Approach $ billions $ billions 26% 24% 23% 74% 76% 77% 1,226 929 1,053 807 955 704 297 251 246 Total Firm Active Passive by Channel by Geography $ billions $ billions 66% 72% 72% 8% 6% 5% 14% 12% 12% 12% 10% 11% 65% 72% 67% 35% 28% 33% 878 880 757 703 620 630 335 351 348 144 131 129 122 115 121 79 74 54 Retail Institutional Americas UK EMEA ex-UK Asia Pac. | 6 Note: numbers may not add up due to rounding