Second Quarter 2020 Results Marty Flanagan President and Chief Executive Officer Loren Starr Chief Financial Officer Allison Dukes Deputy Chief Financial Officer July 28, 2020
Forward-looking statements and Important Information This presentation, and comments made in the associated diluted earnings per share (EPS). We believe the adjusted conference call today, may include “forward-looking statements.” measures provide valuable insight into our ongoing operational Forward-looking statements include information concerning future performance and assist in comparisons to our competitors. These results of our operations, expenses, earnings, liquidity, cash flow measures also assist management with the establishment of and capital expenditures, industry or market conditions, AUM, operational budgets and forecasts and assist the Board of Directors geopolitical events, the COVID-19 pandemic and their potential and management in determining incentive compensation decisions. impact on the company, acquisitions and divestitures, debt and our The most directly comparable U.S. GAAP measures are operating ability to obtain additional financing or make payments, regulatory revenues (and by calculation, gross revenue yield on AUM), developments, demand for and pricing of our products and other operating income, operating margin, net income attributable to aspects of our business or general economic conditions. In Invesco Ltd., and diluted EPS. The operating metrics are presented addition, words such as “believes,” “expects,” “anticipates,” for projection purposes only and are presented consistently with “intends,” “plans,” “estimates,” “projects,” “forecasts,” and future or Invesco’s non-GAAP management reporting approach. conditional verbs such as “will,” “may,” “could,” “should,” and The information in this presentation is meant to supplement the “would” as well as any other statement that necessarily depends on information contained in the earnings release and includes a more future events, are intended to identify forward-looking statements. detailed reconciliation format of the income statement from U.S. None of this information should be considered in isolation from, or GAAP to a non-GAAP presentation. We believe that this as a substitute for, historical financial statements. 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 www.sec.gov. We expressly disclaim any obligation to update the information in any public disclosure if any forward-looking statement later turns out to be inaccurate. This presentation includes the following non-GAAP performance measures: net revenue (and by calculation, net revenue yield on AUM), adjusted operating income, adjusted operating margin, adjusted net income attributable to Invesco Ltd., and adjusted | 2
Introduction Focused on grow ing organically and leveraging operating scale • Working to drive further effectiveness and efficiency across our platform Committed to our long-term strategy • Majority of our business aligned with key future growth areas • Continued investment performance strength in high-demand capabilities led to improved flow fundamentals Transformed how w e engage w ith clients • Meaningfully strengthened our processes, technology and communications to support greater connectivity with clients • Reshaped our client delivery model to a fully digital engagement platform | 3
Second quarter 2020 highlights • 53%, 50%, 57% 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 strong demand from clients globally: Fixed Income and Global, Emerging Markets, and Asian Equities June 30, 2020 AUM of $1,145.2 billion compared to $1,053.4 billion at the end of Q1 AUM and Net • Average AUM of $1,118.7 billion compared to $1,176.3 billion in Q1 Revenue Yield 1 • Net revenue yield of 37.0 bps (ex-performance fees 36.8 bps) compared to 39.0 bps (ex- • performance fees 38.7 bps) in Q1 Gross long-term inflows of $62.7 billion compared to $84.7 billion in Q1 Flows • Record institutional pipeline of $33.4 billion, enabled by Solutions capability • Long-term net outflows of $14.2 billion, versus long-term net outflows of $19.1 billion in Q1 • Investment capability areas of strength include Fixed Income ($6.0 billion net long-term inflows • across all channels and markets), contributing to $2.0 billion net long-term inflows in Asia Pacific and $1.8 billion net long-term inflows in EMEA ex UK Net revenues down 9.7% to $1,034.3 million from $1,145.8 million in Q1 Overall Adjusted • Adjusted operating income of $359.7 million compared to $412.7 million in Q1 Operating • Adjusted operating margin decreased to 34.8% in the quarter from 36.0% in Q1 Results 1 • Adjusted diluted EPS increased to $0.35 versus $0.34 in Q1 • Reduced revolver balance by $182 million while improving cash balances, consistent with our Capital Mgmt. • long-term objectives & Balance Sheet (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% 16% 80% 18% 70% 6% 7% 60% 21% 20% 50% 22% 12% 21% 13% 7% 21% 40% 34% 75% 11% 50% 61% 59% 63% 38% 30% 32% 46% 48% 48% 29% 24% 20% 39% 38% 32% 37% 35% 28% 31% 30% 16% 10% 16% 21% 10% 12% 7% 10% 10% 8% 7% 6% 3% 3% 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 6/30/2020. Includes AUM of $636.3 billion (56% of total IVZ) for 1 year, $631.2 billion (55% of total IVZ) for 3 year, $622.0 billion (54% of total IVZ) for 5 year and $565.1 billion (49% of total IVZ) for 10 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 | 5 composite. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience.
Assets under management Q2'19 Q1'20 Q2'20 % of Total Firm AUM Total AUM by Investment Approach $ billions $ billions 1,198 77% 77% 75% 23% 23% 25% 1,145 1,053 928 863 807 282 270 246 Total Firm Active Passive by Channel by Geography $ billions $ billions 71% 67% 69% 29% 33% 31% 72% 72% 73% 6% 5% 5% 12% 12% 11% 10% 11% 11% 852 864 830 788 757 703 357 346 351 139 131 129 122 119 121 76 54 55 Americas UK EMEA ex-UK Asia Pac Retail Institutional | 6 Note: numbers may not add up due to rounding
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