Ashmore : FULL YEAR RESULTS FOR YEAR ENDING 30.6.2019

Ashmore Group plc

Results for 12 months ending 30 June 2019

6 September 2019

www.ashmoregroup.com

Overview

• Strong operating and financial performance
• • Active management delivers outperformance: >90% AuM outperforming over one, three & five years
  • AuM increased 24% YoY, driven by broad-based net inflows of US$10.7 billion
  • Net management fee income +17%
  • Adjusted EBITDA +10%, margin maintained at 66%
  • Diluted EPS +18%
  • Dividends per share 16.65p
• Diverse range of Emerging Markets well-positioned for growth and future returns
  − GDP growth premium vs DM is expanding, inflation is largely under control, central banks cutting rates − Significant value available; Ashmore taking advantage of recent opportunities
  − Main risks are in DM (e.g. US trade policy) where yields are low
  − Continued incentives for investors to re-allocate to Emerging Markets

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Strategy focused on Emerging Markets growth opportunity

Significant allocation opportunities (Phase 1)

• Developed world has US$80trn wealth; every 1% increase in EM allocations is a significant AuM opportunity
• Long term: EM target allocations <10% versus 15% (equities) to 20% (fixed income) in global indices
• Short term: investors continue to re-allocate towards target weights after reducing in 2013-2016 period

Increasing AuM diversification (Phase 2)

• Intermediary retail 15% of AuM vs 8% four years ago
• Americas is now largest source of AuM (26%)
• Product range continues to evolve e.g. blended debt ESG, low volatility local currency bonds, China bonds

Local Emerging Markets platforms developing (Phase 3)

• Funds tailored to local market opportunities, liquid markets & alternatives
• Local investors and single-country allocations by global clients
• Total AuM US$5.3 billion; Indonesia is largest with AuM of US$2.0 billion (+20% YoY)

Intermediary retail AuM

16

14

12

10

8

6

4

2

0

2015	2016	2017	2018	2019
		AuM US$bn		% Group AuM

Ashmore Indonesia AuM (IDR bn)

30,000

25,000

20,000

15,000

10,000

5,000

0

2014

2015

2016

2017

2018

2019

Strategy delivering diversified AuM growth

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Investment performance

AuM outperforming versus benchmark,	AuM outperforming versus benchmark,	AuM outperforming versus benchmark,
gross one year annualised					gross three years annualised					gross five years annualised
100%											100%											100%
																			97%											97%
								90%
80%											80%											80%
60%											60%											60%
40%											40%											40%
20%											20%											20%
0%											0%											0%
	External	Local	Corporate	Blended	Equities	Multi-asset	Group		External	Local	Corporate	Blended	Equities	Multi-asset	Group		External	Local	Corporate	Blended	Equities	Multi-asset	Group

OutperformingUnderperforming

• Strong investment performance over one, three and five years
• Risk added in 2018 has delivered significant increase in one year performance (31 Dec 2018: 30% AuM outperforming)

Active investment processes delivering strong outperformance

See Appendix 9 for related disclosures

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Financial performance overview

• AuM +24% YoY, average AuM +16% YoY
• • Net flows +US$10.7 billion and positive investment performance of +US$6.9 billion
• Adjusted net revenue +11%
• • Net management fees +17% to £294.3 million, reflecting diversified growth in average AuM
• Ongoing cost discipline
  ˗ Like-for-likenon-VC cost growth only 3%
• Adjusted EBITDA +10%
  ˗ High profit margin maintained at 66%
• Strong cash generation
• • Operating cash flow of £214.3 million (106% of adjusted
    EBITDA)
• Profit before tax +15%

	FY2018/19	FY2017/18
	£m	£m	YoY %
AuM (US$bn)	91.8	73.9	24
Adjusted net revenue	308.1	278.3	11
Adjusted operating costs	(111.1)	(99.7)	(11)
Adjusted EBITDA	201.8	183.6	10
- margin	66%	66%	-
Seed capital	10.7	10.1	6
Profit before tax	219.9	191.3	15
Diluted EPS (p)	25.0	21.3	18
DPS (p)	16.65	16.65	-

Figures stated on an adjusted basis exclude FX translation and seed capital-related items; see Appendix 1

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