Results Presentation Full Year to 31 March 2019 Gavin Rochussen, - PowerPoint PPT Presentation

Results Presentation Full Year to 31 March 2019 Gavin Rochussen, Chief Executive Officer John Mansell, Executive Director June 2019 This presentation is for one-on-one use with non-US professional investors only www.polarcapital.co.uk

Agenda • Overview • Highlights • Market Perspective • Fund Performance • Fund Flows and AuM • Financial Review • Strategy Update • Summary and Outlook 2 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Overview Net Inflows Compelling Fund Performance 1 • £556 million net inflows • 73% of AuM in top quartile over three years • 14 out of a total of 23 open ended funds had • 96% of AuM in top quartile since inception positive net inflows • Average AuM increased by 23% Active Management Delivers Results Strategic Progress • 92% of AuM ahead of benchmark • Fund oversight strengthened since inception • New Emerging Market Team settled • 77% of AuM ahead of benchmark over • Fund launches three years • Investment team changes and fund termination • Record net performance fee profits of • Head of Nordic distribution appointed £24 million • Head of North America distribution appointed Source: 1. Polar Capital, as at 31 May 2019. Past performance is not indicative or a guarantee of future results. 3 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Highlights Record performance fee profits of £24m (2018 - £15m) Total dividend AuM increased 15% increased by 18 % to to £13.8bn 33p Core operating profit Adjusted diluted EPS increased 52% to increased 40.7% to £42.2m and margin 51.5p increased to 37% (2018 – 30%) Source: Polar Capital, as at 31 May 2019. Past performance is not indicative or a guarantee of future results. 4 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Market Perspective Global indices vs volatility • Increased market volatility and a market 40% correction in February 2018 when the US ten 30% year bond yield approached 3% 20% • Fears of trade wars and concerns about global growth triggered a correction in the last 10% quarter of 2018 0% • All major equity indices declined during -10% calendar 2018, the worst year for equities since the financial crisis, a decade earlier -20% • The first quarter of 2019 posted a rapid equity -30% recovery and a reduction in volatility MSCI North America Index MSCI All-Country World Index • Polar Capital funds performed well through TOPIX MSCI Emerging Market Index this volatile period DJ World Technology Index FTSE All-Share Index S&P 500 30d Volatility Source: Bloomberg, as at 31 May 2019. Past performance is not indicative or a guarantee of future results. 5 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Market Perspective Net sales of active long-term funds • across Europe The environment for equities remains challenging • Fixed income is the only area of net inflows across Europe since January • Equity fund flows have been negative since October 2018 • Industry outflows in Q1/19 down on Q4/18 but redemptions continued Source: Broadridge Fund File. Data excludes funds of funds, money market funds and ETFs (unless stated). 6 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Performance Annualised strategy performance against benchmark (since inception) 16.0% 1 st Quartile 14.0% 2 nd Quartile 3 rd Quartile 12.0% 4 th Quartile 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% Source: Polar Capital factsheet data, 31 May 2019, Lipper quartile rankings as at 31 May 2019. Lipper Leaders fund ratings do not constitute and are not intended to constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. As a result, you should not make an investment decision on the basis of this information. Rather, you should use the Lipper ratings for informational purposes only. Certain information provided by Lipper may relate to securities that may not be offered, sold or delivered within the United States (or any State thereof) or to, or for the account or benefit of, United States persons. Lipper is not responsible for the accuracy, reliability or completeness of the information that you obtain from Lipper. In addition, Lipper will not be liable for any loss or damage resulting from information obtained from Lipper or any of its affiliates. For Lipper methodology please go to: http://lipperalpha.financial.thomsonreuters.com/wp-content/uploads/2015/11/S026849- Method-Lipper-Leaders-Ratings-System-International.pdf Past performance is not indicative or a guarantee of future returns. *The Polar Capital Japan Alpha Fund was renamed the Polar Capital Japan Value Fund on 12 January 2018. **Absolute return product, Benchmark: 3 month GBP LIBOR. Funds ordered according to launch date. Please refer to page 30 for Fund inception dates. 7 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Performance % of UCITS funds AuM in top quartile • Majority of AuM is in the first quartile against the Lipper peer group over three years • 96% Lipper quartile ranking is compelling over five years and since inception 73% 71% Top Quartile over 3 Years Top Quartile over 5 Years Top Quartile since inception Source: Polar Capital, 31 May 2019. Totals may not sum due to rounding. Past performance is not indicative or a guarantee of future results. 8 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Performance Against Benchmarks Percentage of AuM that has outperformed benchmark • 81% of AuM outperformed benchmark in 2019 to 31 May 2019 YTD 81% • 61% of AuM outperformed benchmark in 2018 3YR 73% • 20 funds outperformed benchmark in 2019 to 31 May 2019 5YR 92% • 12 funds outperformed benchmark in 2018 SI 92% 0% 20% 40% 60% 80% 100% Source: Polar Capital, 31 May 2019. Totals may not sum due to rounding. Past performance is not indicative or a guarantee of future results. 9 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Current Active Share Japan Fund • As active equity managers, the percentage Japan Value Fund “active share” of portfolios is between 60% Automation & Artificial Intelligence Fund and 92% UK Value Opportunities Fund GEM Income Fund • Where specialist sector or regional Global Convertible Fund benchmarks are used, the active share North American Fund relative to the benchmark is lower European ex-UK Income Fund Healthcare Opportunities Fund Asian Opportunities Fund Financial Opportunities Fund Biotechnology Fund Emerging Market Stars Fund Insurance Fund Asian Stars Fund China Stars Fund Healthcare Blue Chip Fund Global Technology Fund 50% 60% 70% 80% 90% 100% Source: Polar Capital, 31 May 2019. 10 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Fund Liquidity Fund Liquidity Total cumulative fund liquidity • Fund liquidity monitored in real time by the 100% oversight team • Fund capacity is determined by underlying 80% fund liquidity profile • Less liquid strategies have reduced capacity 60% • 50% of the least liquid Polar Capital Fund can 40% be liquidated in 15 days • Eight illiquid holdings across four funds 20% representing less than 0.2% of Group AuM as at 31 May 2019 0% Less than 1 day Less than 5 days Less than 10 days Source: Polar Capital, 31 May 2019. 11 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Style Profile 24 Other - 5% Income - 6% y • Value and Income style profile is 44% of AuM • Growth style profile is half of total AuM • ‘Other’ includes absolute return and alternative asset classes Growth - 50% Value - 38% Growth Value Income Other Source: Polar Capital, 31 May 2019. Totals may not sum due to rounding. 12 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

AuM 16.0 £14.7bn £14.1bn £13.8bn 14.0 £12.0bn 12.0 £10.6bn 10.0 £9.3bn £7.3bn £7.7bn 8.0 6.0 4.0 2.0 0.0 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 May-19 Total AUM Avg AUM Source: Polar Capital, 31 May 2019. All figures quoted in Pounds Sterling. Totals may not sum due to rounding. Past performance is not indicative or a guarantee of future results. 13 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.