2016 full year results

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1 206 full year results Thursday 9 February 207 Andrew Formica Chief Executive Roger Thompson Chief Financial Officer

2 Agenda 206 headlines Andrew Formica 206 financial results Roger Thompson Merger update Andrew Formica 2

3 206 headlines Resilient financial results reflect delivery of strategy Challenging investment conditions, with politics driving markets FY6 FY5 AUM at record highs despite significant Retail outflows Continuing Institutional inflows reflect success of new investment teams and more global distribution Transformational merger announced with Janus Capital, positioning the Group for future growth 3 year investment performance¹ 77% 8% Net flows ( 4.0bn) 8.5bn Total AUM 0.0bn 92.0bn Underlying PBT 22.7m 220.0m Underlying diluted EPS 5.2p 7.2p Total dividend per share 0.5p 0.3p Percentage of funds, asset-weighted, that are outperforming based on the relevant metric: peer percentile ranking for Retail, positive for absolute return, positive versus benchmark for Institutional. 3

4 Investment performance 3 year performance consistently strong Core capabilities Closing AUM 3 Dec 206 year 3 years Global equity peer group performance versus index² % 20 75th pctl active fund European Equities 9.7bn 26% 86% 50th pctl active fund 25th pctl active fund Global Equities 34.0bn 34% 70% 0 Global Fixed Income 28.bn 80% 76% - Multi-Asset 5.bn 48% 42% (0) Alternatives 4.bn 62% 99% Total 0.0bn 50% 77% (20) Percentage of funds, asset-weighted, that are outperforming based on the relevant metric: peer percentile ranking for Retail, positive for absolute return, positive versus benchmark for Institutional. 2 Source: Morningstar, IA Global Equity Sector. Performance of active funds versus MSCI All Countries World index. Calendar year returns, net of fees. 4

5 Retail net flows Top and bottom net fund Retail flows FY5 Hn Gm Continental European Hn Gm UK Absolute Return European Focus Hn UK Property Hn Hzn Pan European Equity Hn European Growth Hn China Opportunities Hn European Special Situations Hn Hzn Global Property Equities Hn Hzn Global Technology m (,200) 2,000 Top and bottom net fund Retail flows FY6 Hn UK Absolute Return Hn Gm UK Absolute Return Hn Hzn Euroland Global Equity Income Hn Strategic Bond Hn Hzn Pan European Alpha Hn Hzn Euro Corporate Bond Hn Hzn Pan European Equity Hn UK Property European Focus m (,200) 2,000 Retail net flows FY2 to FY6 4,439 6,80 8,032 Retail US Mutuals Retail SICAVs UK Retail/Other¹ m (,244) (4,66) FY2 FY3 FY4 FY5 FY6 Includes flows from UK OEICs, Unit Trusts, Investment Trusts, Australian MIS (Managed Investment Schemes), Singapore Mutual funds and Retail Segregated Mandates. 5

6 Institutional net flows Increasingly diverse strategies and client base Key mandate wins FY6 Region UK Europe New Zealand Australia Australia Strategy Emerging Markets Technology Global Equities Emerging Markets Australian Fixed Income Institutional net flows FY2 to FY6 m (,948) (2,7) FY2 FY3 FY4 FY5 FY6 6

7 A stronger, more diverse business AUM by channel AUM by capability AUM by client geography 38% 4% Retail Institutional % 4% 0% 5% 27% 28% US Equities European Equities Global Equities Global Fixed Income Multi-Asset Alternatives 5% % 9% 2% 7% 20% UK Cont. Europe Americas Pan Asia 62% 59% 30% 29% 65% 5% 2% 20% % 4% FY3¹ FY6 FY3¹ FY6 FY3¹ FY6 Excludes AUM subject to Property transactions with TIAA-CREF and resultant TH Real Estate JV AUM but includes Henderson UK Property OEIC. 7

8 A stronger, more diverse business AUM by channel AUM by capability AUM by client geography 38% 4% Retail Institutional % 4% 0% 0% 5% 4% 27% 28% 26% US Equities European Equities Global Equities Global Fixed Income Multi-Asset Alternatives and other 5% % 2% 4% 7% 53% EMEA Americas Pan Asia 62% 59% 30% 29% 2% 4% 84% 7% 2% 20% 25% 33% % 4% FY3¹ FY6 FY3¹ FY6 Industry² FY3¹ FY6 Industry³ Excludes AUM subject to Property transactions with TIAA-CREF and resultant TH Real Estate JV AUM but includes Henderson UK Property OEIC. 2 Source: Morningstar, Worldwide OE excluding money market, fund of funds and feeder funds. Capability split based on Henderson analysis of Morningstar s Global category. 3 Source: McKinsey Global Survey

9 Well positioned to move forward Growth and globalisation Expanded investment capabilities Improved client relationships Robust and resilient global operating model Successful acquisitions and integrations in the US and Australia 7% annualised growth in total AUM 63.7bn Target: 6-8% pa Target: 4-6% pa Henderson: 9% pa Target: 2-4% pa Henderson: 3% pa Net new money growth Henderson 5% pa Industry² 2.6% pa Active managers² 0.8% pa 0.0bn AUM FY3¹ Net new money Market/ FX Acquisitions AUM FY6 Excludes AUM subject to Property transactions with TIAA-CREF and resultant TH Real Estate JV AUM but includes Henderson UK Property OEIC. 2 Source: Morningstar, Worldwide OE excluding money market, fund of funds and feeder funds. 9

10 206 full year results Financial results Roger Thompson Chief Financial Officer

11 Financial highlights Resilience and quality of earnings FY6 m FY5 m Change Management fees (net of commissions) % Performance fees (59%) Other income % Net fee income (3%) Income/(loss) from associates and joint ventures 0.5 (0.2) 350% Finance income (39%) Total income (4%) Total expenses (382.0) (398.9) (4%) Underlying profit before tax from continuing operations (3%)

12 Management fee drivers Market, flow and acquisition driven growth m (3.4) (3.2) (3.9) FY5 Net flows Acquisitions/ disposals Markets/ FX Sub-advisory insourcing One-off US Mutual fee adjustments reclassification Margin reduction FY6 2

13 Management fee margins 206 total management fee exit margin: 52bps (Retail 7bps; Instl 25bps) bps 80 FY FY3 FY4 FY5 50 FY Total management fee margin (average) Management fee margin - Retail (average) Management fee margin - Institutional (average) Note: Average margins for FY6 are calculated using daily AUM for relevant fund ranges. Prior period calculations are based on month-end AUM, excluding JV AUM. 3

14 Performance fees Performance fees from 52 funds in FY6 m m 98.7m m m 40.4m 20 0 FY2 FY3 FY4 FY5 FY6 SICAVs Offshore Absolute Return Segregated Mandates UK OEICs/UTs Investment Trusts Other 4

15 Operating cost drivers and action Cost control to protect our investments FY5 FY6 Change Headcount¹,06,006 (%) Fixed staff costs 99.9m 3.3m 3% Variable staff costs 68.7m 4.8m (6%) Non-staff costs 8.2m 23.5m 4% Total 386.8m 378.7m (2%) Fixed staff costs FY5 to FY6 ( m) FY5 Australian build-out FY5 headcount increases FX BAU increases FY6 At period end. Excludes staff working on capitalised projects. 5

16 Tax, EPS, dividend and capital management Tax rate increase as forecast FY6 FY5 Change Total underlying profit before tax 22.7m 220.0m (3%) Tax on underlying profit ( 43.0m) ( 22.9m) 88% Total underlying profit after tax 69.7m 97.m (4%) Underlying effective tax rate on operations 20.2% 0.4% 94% Weighted average number of ordinary shares for diluted EPS,5.4m,43.0m (2%) Underlying diluted EPS 5.2p 7.2p (2%) Total dividend per share 0.50p 0.30p 2% Cash and capital management 3 Dec 206 m 3 Dec 205 m Unrestricted cash Net cash Total capital Group capital requirement¹ (26) (38) Capital above regulatory requirement In February 207, Henderson received feedback from the FCA following its review of the Group's standalone capital position. The capital requirement as at 3 December 205 was based on Henderson s internal calculations. 6

17 Financial summary FY6 m FY5 m FY4 m FY3 m CAGR (FY6 vs FY3) Management fees (net of commissions) % Performance fees (25%) Other income % Net fee income % Income/(loss) from associates and joint ventures 0.5 (0.2) 5..8 (35%) Finance income % Total income % Fixed employee expenses (3.3) (99.9) (88.4) (80.6) 2% Variable employee expenses (4.9) (68.7) (43.6) (28.8) 3% Non-staff operating expenses (23.5) (8.2) (02.6) (87.3) 2% Finance expenses (3.3) (2.) (.6) (.) (33%) Total expenses (382.0) (398.9) (346.2) (307.8) 7% Underlying profit before tax % Key metrics Operating margin¹ 35.% 35.7% 35.5% 35.7% Compensation ratio² 43.7% 44.6% 44.7% 45.4% Average management fee margin³ 53.0bps 56.0bps 57.8bps 56.3bps Net fee income less total operating expenses (fixed employee expenses; variable employee expenses and non-staff operating expenses), divided by net fee income. 2 Employee compensation and benefits, divided by net fee income. 3 Average margins for FY6 are calculated using daily AUM for relevant fund ranges. Prior period calculations are based on month-end AUM. 7

18 206 full year results Merger update Andrew Formica Chief Executive

19 Indicative timetable to completion Key activities Dates Janus 0K filing 6 February 207 UK Class Circular and SEC F4 published Late March - Henderson and pro-forma financials under US GAAP Henderson Q trading statement 9 April 207 Janus Q results 20 April 207 Janus Special Shareholder Meeting to approve merger 25 April 207 Henderson AGM and EGM 26 April 207 Announcement of Henderson intention to delist and cease trading of its ordinary shares on the LSE 26 April 207 Record date 5 May Henderson final and extraordinary dividend¹ - Janus Q dividend Dividend payment date - Henderson final and extraordinary dividend¹ - Janus Q dividend 9 May 207 Henderson to de-list and Henderson ordinary shares to cease trading on the LSE 26 May 207 Janus Henderson ordinary shares to commence trading on the NYSE 30 May 207 Janus Henderson CDIs issued for trading on the ASX 3 May 207 As announced in the market release dated 24 January 207, the Group intends to pay Henderson shareholders an extraordinary dividend, reflecting its Q7 earnings, prior to the closing of the merger. The anticipated dividend payment will be of commensurate value to any Janus Q7 dividend, and remains subject to final Henderson Board approval. 9

20 Progress towards integration Creation of a truly global asset manager Janus Henderson Executive Committee H H Richard Weil Co-CEO Phil Wagstaff Global Head of Distribution Rob Adams Head of Asia Pacific J J Andrew Formica Co-CEO Enrique Chang Global Chief Investment Officer Bruce Koepfgen Head of North America New ExCo meetings to supervise integration planning Progress on Organisational design and structure People decisions Regulatory submissions US fund families Operating model, systems and data platforms H H Roger Thompson Chief Financial Officer Jacqui Irvine Group General Counsel and Company Secretary J J Jennifer McPeek Chief Operating and Strategy Officer David Kowalski Chief Risk Officer Increased confidence in delivery of at least $0m of cost synergies with c.$80m expected by the end of the first 2 months following completion on a run rate basis H Henderson J Janus Implementation costs¹ of up to US$85m Excluding deal costs. 20

21 Janus Henderson: a truly global asset manager Support and initial inflow from Dai-ichi, a 20% shareholder in Janus Well positioned for market evolution Client feedback Diversification to navigate turbulent markets Scale to innovate amid continuing regulatory change Capabilities and relationships to create and sustain demand for active management Compelling range of investment solutions US Equities Janus Henderson¹ AUM: US$322bn Mathematical Global Equities Equities Global Fixed Income Multi- Asset Janus¹ Henderson Alternatives (inc. ETP) We are excited about working further with Henderson after the completion of the merger with Janus. We see this as the merging together of two very strong independent brands increasing the capabilities that we can show our clients. What is important to us outside of innovation and performance is the brand and does that fit well with us and our clients. The culture we see within Henderson and to be enhanced through Janus makes us very comfortable about the quality of the organisation that we are dealing with. Will Hamilton, CEO, Hamilton Wealth Management, Australia One question we could have posed was, Does Henderson have the footprint to allow it to prosper? Henderson has answered that question for us. This is definitely a vote of confidence in Janus Henderson. Chris Ralph, CIO, St James s Place, UK We have a strong partnership with Henderson across a range of strategies and managers. The Janus Henderson merger gives us the opportunity to deepen and extend this relationship. Andy Moss, Chief Executive, Phoenix Life, UK The Janus Henderson merger is a positive development from my perspective. With $322bn under management, the combined firm will have the products and distribution reach to serve its largest clients on a truly global basis. Jörg Grossmann, CEO, Credit Suisse InvestLab, Switzerland Note: Exchange rate used for translation from GBP to USD as at 3 Dec 206:.24 Includes $2bn of ETP assets, for which Janus is not the named advisor or subadvisor and therefore does not earn a management fee on those assets 2

22 Janus Henderson Great for clients Opportunities for colleagues Freedom to innovate, change and grow 22

23 Q&A

24 Appendix

25 AUM and fund flows m H6 2H6 Opening AUM Jan 6 Net flows Market/ FX Closing AUM 30 Jun 6 Net flows Market/ FX Closing AUM 3 Dec 6 Closing AUM net mgmt fee (exit bps) UK OEICs/Unit Trusts/Other 23,358 (584) ,98 (48),633 24,43 SICAVs 9,328 (87),90 9,70 (,767),766 9,700 US Mutuals 8, ,5 (,42),000 8,973 Investment Trusts 5, (52) 5, ,267 Total Retail 56,95 (,354) 2,06 57,577 (3,262) 5,038 59,353 7 UK OEICs/Unit Trusts 9, ,0 (655) 673,9 SICAVs,565 (259) 62,368 (8) 64,424 Australian MIS,499 (43) 98, ,704 Managed CDOs 02 (9) 2 05 (6) 4 03 Offshore Absolute Return Funds 2,397 (372) 98 2,223 (5) 234 2,306 Segregated Mandates 9,653 (807) 2,5 20,997 2,084,758 24,839 Private Equity Funds 58 (2) (2) 54 (4) 5 55 Other 2 54 () 7 60 (6) 4 48 Total Institutional 35,070 (684) 3,076 37,462,29 2,845 4, Total Group 9,985 (2,038) 5,092 95,039 (,97) 7,883 00,95 52 Includes Australian Managed Investment Schemes, Singapore Mutual funds and Retail Segregated Mandates. 2 Includes US Mutuals. 25

26 AUM and fund flows By asset class m H6 2H6 Opening AUM Jan 6 Net flows Market/ FX Closing AUM 30 Jun 6 Net flows Market/ FX Closing AUM 3 Dec 6 Closing AUM net mgmt fee (exit bps) Equity 60,89 (,928) 2,772 6,735 (,075) 6,900 67, Fixed Income 26, ,422 29,594 (457) , Property 4,7 (425) (03) 3,643 (434) 29 3,238 n/a Private Equity 82 (6) 67 (5) 6 68 n/a Total Group 9,985 (2,038) 5,092 95,039 (,97) 7,883 00,95 52 By capability¹ m H6 2H6 Opening AUM Jan 6 Net flows Market/ FX Closing AUM 30 Jun 6 Net flows Market/ FX Closing AUM 3 Dec 6 European Equities 20,442 (,228) 2 9,425 (2,08) 2,379 9,696 Global Equities 28,22 (950),665 28,927,420 3,604 33,95 Global Fixed Income 24, ,34 27,56 (362) ,079 Multi-Asset 4,890 (290) 299 4,899 (225) 40 5,084 Alternatives² 3, ,272 (696) 565 4,4 Total Group 9,985 (2,038) 5,092 95,039 (,97) 7,883 00,95 AUM reported on a direct basis. 2 Alternatives includes Property and Private Equity. 26

27 5 Retail funds with AUM of bn+ at 3 Dec 6 Fund Fund range Capability FY6 net flows AUM 3 Dec 206 Henderson Gartmore Continental European SICAVs European Equities ( 53m) 3.7bn Henderson Gartmore UK Absolute Return SICAVs Alternatives 506m 3.6bn International Opportunities US Mutuals Global Equities ( 37m) 3.5bn Henderson UK Property UK OEICs/UTs Alternatives ( 860m) 3.2bn Global Equity Income US Mutuals Global Equities 280m 3.2bn Henderson Horizon Pan European Equity SICAVs European Equities ( 749m) 3.2bn Henderson Horizon Euro Corporate Bond SICAVs Global Fixed Income ( 645m) 2.2bn Henderson Cautious Managed UK OEICs/UTs Global Equities ( 26m) 2.2bn Henderson European Selected Opportunities UK OEICs/UTs European Equities ( 438m) 2.bn Henderson UK Absolute Return UK OEICs/UTs Alternatives 88m.9bn Henderson Strategic Bond UK OEICs/UTs Global Fixed Income 22m.7bn Henderson Horizon Global Technology SICAVs Global Equities ( 423m).6bn European Focus US Mutuals European Equities (,69m).5bn The City of London Investment Trust Investment Trusts Global Equities 6m.4bn Henderson Horizon Euroland SICAVs European Equities 362m.4bn Total ( 2,956m) 36.4bn 27

28 Q2 2Q2 3Q2 4Q2 Q3 2Q3 3Q3 4Q3 Q4 2Q4 3Q4 4Q4 Q5 2Q5 3Q5 4Q5 Q6 2Q6 3Q6 4Q6 Henderson net flows Institutional US Retail Retail SICAVs UK Retail/Other¹,24 2,988 2,70 2,042, ,554 2,040,305,643 4Q6 net flows Retail ( 2.2bn) Institutional 0.9bn (857) (,29) (754) (,25) (82) (679) (62) (,359) (,269) (,359) Includes flows from UK OEICs, Unit Trusts, Investment Trusts, Australian MIS (Managed Investment Schemes), Singapore Mutual funds and Retail Segregated Mandates 28

29 Investment management capabilities Increasingly diverse capability set Multi-Asset 5.bn Alternatives 4.bn Institutional Retail Institutional Global Fixed Income 28.bn Retail Institutional Retail AUM 3 Dec bn Institutional European Equities 9.7bn Retail Institutional Retail Global Equities 34.0bn European Equities Diverse, high performance business Global Equities Strong specialist franchises, building high capacity global products Global Fixed Income Regional franchises, with increasing global exposure Multi-Asset Dual track approach to serve retail and institutional markets Alternatives Expanding in liquid alternatives alongside traditional hedge funds 29

30 Profit and loss m FY5 H6 2H6 FY6 Change Management fees (net of commissions) % Performance fees (59%) Other income % Net fee income (3%) (Loss)/income from associates and joint ventures (0.2) % Finance income (39%) Net income (4%) Fixed employee expenses (99.9) (55.7) (57.6) (3.3) 3% Variable employee expenses (68.7) (67.0) (74.9) (4.9) (6%) Non-staff operating expenses (8.2) (58.3) (65.2) (23.5) 4% Total operating expenses (386.8) (8.0) (97.7) (378.7) (2%) Finance expenses (2.) (3.3) (3.3) (73%) Total expenses (398.9) (84.3) (97.7) (382.0) (4%) Total underlying profit before tax (3%) Tax on underlying profit (22.9) (2.0) (22.0) (43.0) 88% Total underlying profit after tax (4%) Acquisition related and non-recurring items Acquisition related items (59.6) (28.8) (28.3) (57.) (4%) Non-recurring items 7.5 (3.3) (3.) (6.4) (39%) Tax on acquisition related items (6%) Tax on non-recurring items 3.5 (0.4).8.4 (60%) Total profit after tax (32%) 30

31 Performance fees UK OEICs & Unit Trusts SICAVs Investment Trusts Offshore Abs. Return Funds¹ Instl/Secured credit/pe/aus. MIS Non Perf. Fee ranges² AUM 3 December 206 ( bn) Performance fees gross FY6 ( m) Number of funds generating performance fees in FY6⁴ AUM 3 December 206 generating FY6 performance fees ( bn)⁴ Total Number of funds with a H7 performance fee crystallisation date AUM with performance fee crystallisation date in H7 ( bn) AUM with an uncrystallised performance fee (including at HWM) at 3 December 206 vesting in H7 ( bn) n/a n/a AUM within 5% of an uncrystallised performance fee at 3 December 206 vesting in H7 ( bn) n/a n/a Number of funds with a 2H7 performance fee crystallisation date AUM with performance fee crystallisation date in 2H7 ( bn) AUM with an uncrystallised performance fee (including at HWM) at 3 December 206 vesting in 2H7 ( bn) 3,4,5 0.8 n/a n/a AUM within 5% of an uncrystallised performance fee at 3 December 206 vesting in 2H7 ( bn) 3,4, n/a n/a Performance fee range (%) of outperformance 5-20% 0-20% 5% 0-20% 4-28% Performance fee frequency Performance fee timing Performance fee methodology Quarterly Various Relative/Absolute plus HWM 24 Annually, 2 Quarterly 24 at June, 2 on Quarters Relative plus HWM Annually Annually Quarterly and Annually Various Various Various Relative plus HWM Absolute plus HWM n/a not available; HWM High Water Mark; PE Private Equity Includes Hedge Managed Accounts 2 Predominantly US Mutuals 3 This excludes Offshore Absolute Return AUM of c 0.bn that earns a performance fee only on redemption 4 For Offshore Absolute Return Funds, this excludes funds earning performance fees on redemption and only includes those with a period end crystallisation date 5 Excludes AUM of funds that still have to crystallise in H7 Bespoke 3

32 Operating margin and compensation ratio Focus remains on absolute profit growth Total income and underlying profit before tax ( m) Operating margin and compensation ratio (%) Compensation ratio Operating margin FY2 FY3 FY4 FY5 FY6 FY2 FY3 FY4 FY5 FY6 Employee compensation and benefits, divided by net fee income. 2 Net fee income less total operating expenses, divided by net fee income. 32

33 Non-staff operating expenses FY6 m FY5 m Change m Change Investment administration % Information technology % Office expenses % Depreciation % Other expenses (2.8) (6%) Non-staff operating expenses % 33

34 EPS calculation FY5 H6 2H6 FY6 Underlying profit before tax 220.0m 00.5m 2.2m 22.7m Less: tax on underlying profit ( 22.9m) ( 2.0m) ( 22.0m) ( 43.0m) Total underlying profit after tax attributable to equity holders of the parent 97.m 79.5m 90.2m 69.7m Acquisition related items post tax ( 46.9m) ( 22.7m) ( 22.4m) ( 45.m) Non-recurring items post tax.0m ( 3.7m) (.3m) ( 5.0m) Profit after tax attributable to equity holders of the parent 6.2m 53.m 56.5m 09.6m Weighted average number of ordinary shares for the purpose of basic EPS (m),093.,089.0 n/a,09. Weighted average number of ordinary shares for the purpose of diluted EPS (m),43.0,7. n/a,5.4 Basic EPS based on underlying profit after tax 8.0p 7.3p 8.3p 5.6p Diluted EPS based on total underlying profit after tax 7.2p 7.p 8.p 5.2p 34

35 Net cash generation m (6.2) (40.) Dec 205¹ Operating cash flows Dividends paid Net seed capital investment Purchase of own shares 3 Dec 206¹ Net cash amounts exclude non-group cash held in manager dealing accounts and cash held by consolidated funds 35

36 Janus Henderson Janus Henderson pro-forma AUM of US$322bn at 3 December 206 Highly complementary businesses Relevant to future client needs Well positioned for market evolution Compelling value creation Americas² Total AUM US$72bn Janus¹ Henderson Americas² UK and Continental Europe Total AUM US$98bn Pan Asia Total AUM US$52bn UK Continental Europe Japan Australia Other Note: Exchange rate used for translation from GBP to USD as at 3 Dec 206:.24 Includes $2bn of ETP assets, for which Janus is not the named advisor or subadvisor and therefore does not earn a management fee on those assets. 2 Includes Latin America. 36

37 Contacts Investor enquiries Miriam McKay +44 (0) Head of Investor Relations Louise Curran +44 (0) Investor Relations Manager Investor Relations +44 (0) Media enquiries Angela Warburton +44 (0) Global Head of Communications United Kingdom: FTI Consulting Andrew Walton +44 (0) Australia: Honner Rebecca Piercy

38 Henderson Group plc 20 Bishopsgate, London EC2M 3AE Important information This presentation issued by Henderson Group plc (or the Group ) is a summary of certain information contained in the stock exchange announcements dated 9 February 207 (relating to the Group s 206 full year results to 3 December 206) and should be read in conjunction with, and subject to, the full text of those announcements. This presentation contains forward-looking statements with respect to the financial condition, results and business of the Group. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend on circumstances, that may or may not occur in the future. There are a number of factors that could cause the Group s actual future performance and results to differ materially from the results expressed or implied in these forward-looking statements. The forward-looking statements are based on the Directors current view and information available to them at the date of this presentation. The Group makes no undertaking to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast. 38

1H16 interim results. Thursday 28 July Andrew Formica Chief Executive. Roger Thompson Chief Financial Officer

1H16 interim results. Thursday 28 July Andrew Formica Chief Executive. Roger Thompson Chief Financial Officer 1H16 interim results Thursday 28 July 2016 Andrew Formica Chief Executive Roger Thompson Chief Financial Officer Agenda 1H16 overview EU referendum update 1H16 financial results Strategy and outlook 2