Ashmore : INTERIM REPORT FOR 6 MONTHS ENDING 31.12.2020

Interim Report 2020/21

Contents

For a downloadable version of the interim report, other announcements and details of up-coming events, please visit the investor relations section of the Group's website

www.ashmoregroup.com

Chief Executive Officer's report

Interim condensed consolidated financial statements

• 2 Notes to the interim condensed

  consolidated financial statements 17

• 12 Responsibility statement of the Directors in respect of the

  half-yearly financial report 31

  Independent Review Report

  to Ashmore Group plc 32

Unaudited interim results for the six months to 31 December 2020

Highlights

Assets under management (AuM) at

AuM outperforming benchmarks over

31 December 2020	One year
US$93.0bn	50%
30 June 2020: US$83.6bn	30 June 2020: 9%
Net management fees	Adjusted EBITDA	Adjusted EBITDA margin
£138.9m	£107.2m	68%
H1 2019/20: £168.3m	H1 2019/20: £122.5m	H1 2019/20: 69%
Profit before tax	Diluted earnings	Interim dividend
per share	per share
£150.6m	18.2p	4.80p
H1 2019/20: £132.4m	H1 2019/20: 15.8p	To be paid on 30 March 2021
H1 2019/20: 4.80p
Ashmore Group plc | Interim Report 2020/21

Non-GAAP alternative performance measures (APMs) are defined and explained on page 11.

Three years	Five years
39%	91%
17%	74%

1

Chief Executive Officer's report

Ashmore delivered strong AuM growth of +11% over the six months, primarily through investment performance as would be expected at this relatively early stage in a recovery cycle and following the severe drop in markets earlier in 2020. The backdrop of rising asset values and Ashmore's substantial alpha generation over the six months meant that profit before tax increased by 14%, driven by significant mark-to-market gains on the Group's seed capital investments.

Ashmore's operating performance reflects 6% lower average AuM compared with the prior year period, and consequently adjusted net revenue declined by 12% and adjusted EBIDTA was 12% lower. The efficiency of the Group's operating platform and the ongoing focus on cost control means that the adjusted EBITDA margin was maintained at 68%.

Diluted EPS increased by 15%, while on an adjusted basis, excluding the effects of foreign exchange translation and

Foreign
H1 2020/21	Seed capital-	exchange	H1 2020/21	H1 2019/20
£m	Statutory	related items	translation	Adjusted	Adjusted
Net management fees	138.9	-	-	138.9	168.3
Performance fees	7.7	-	-	7.7	3.4
Other revenue	1.5	-	-	1.5	2.5
Foreign exchange	2.6	-	6.1	8.7	3.1
Net revenue	150.7	-	6.1	156.8	177.3
Investment securities	55.9	(55.9)	-	-	-
Third-party interests	(25.7)	25.7	-	-	-
Personnel expenses	(38.8)	-	(1.2)	(40.0)	(43.8)
Other expenses excluding depreciation and amortisation	(10.4)	0.8	-	(9.6)	(11.0)
EBITDA	131.7	(29.4)	4.9	107.2	122.5
EBITDA margin	87%	-	-	68%	69%
Depreciation and amortisation	(1.6)	-	-	(1.6)	(1.7)
Operating profit	130.1	(29.4)	4.9	105.6	120.8
Net finance income/(expense)	20.4	(19.9)	-	0.5	3.7
Associates and joint ventures	0.1	-	-	0.1	(0.1)
Adjusted profit before tax	150.6	(49.3)	4.9	106.2	124.4
Foreign exchange translation	-	-	(4.9)	(4.9)	(0.4)
Seed capital-related items	-	49.3	-	49.3	8.4
Profit before tax	150.6	-	-	150.6	132.4

2

Ashmore Group plc | Interim Report 2020/21

seed capital items, diluted EPS fell by 13% to 12.8 pence. Recognising the strength of Ashmore's business model and the performance over the period, the Board has maintained the interim dividend per share of 4.80 pence.

Summary non-GAAP financial performance

The table below reclassifies items relating to seed capital and the translation of non-Sterling balance sheet positions to aid comprehension of the Group's operating performance. The exclusion of these items also provides a more meaningful comparison with the prior period. For the purposes of presenting 'Adjusted' profits, personnel expenses have been adjusted for the variable compensation on foreign exchange translation gains and losses.

Non-GAAP alternative performance measures (APMs) are defined and explained on page 11.

Reclassification of