Results Presentation December 2014 Tim Woolley (CEO) John Mansell (COO) This presentation is for one-on-one use with non-US professional investors only www.polarcapital.co.uk
Financial Review Highlights • AUM – AUM at 30 September 2014 increased to US$13.4bn from US$13.2bn at 31 March 2014 – AUM at 30 November 2014 US$13.2bn • Profitability and EPS – Pre-tax (pre SBP) profits up to £12.7m (2013: £10.6m) – Core operating profit excluding performance fees £13.9m (2013: £10.4m) – Adjusted diluted EPS up to 10.75p (2013: 8.77p) 1 • Mark to market value of performance fee profits – At 30 November 2014, value of annual performance fee profits £4.2m • Dividend – Initial dividend of 5.5p (2014: 4.0p); predicted on half of first half’s core earnings – Relative increase in first dividend provides no guidance in respect of second dividend – Total dividend will be predicated on total core earnings and performance fees received in the year – Second dividend payable in July 2015 will be a balancing payment to make up total annual dividend • Balance Sheet – Strong balance sheet comprising cash and investments of £63.4m (2013: £56.7m) Source: Polar Capital. 1: Adjustment excludes cost of share based payments and amortisation of intangibles. Past performance is not indicative or a guarantee of future results. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 2
Polar Capital AUM Significant AUM growth but not linear 16 $13.7 14 $13.4 $13.2 $13.2 $13.0 12 $11.4 10 $9.2 $bn 8 $7.2 $6.0 6 $5.3 $5.1 $5.1 $3.9 $4.2 4 2 0 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Nov-14 Japan Non-Japan Source: Polar Capital, 28 November 2014. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 3
AUM Growth Analysis 30 Sep 2013 30 Sep 2014 % Increase US$’m US$’m Year on Year Japan 4,914 5,300 8% 5,360 7,139 Long Only (ex Japan) 33% Technology 1,488 1,899 28% Healthcare 794 1,170 47% Financials 975 979 0% GEMs 749 972 30% North America 1,321 2,024 53% Global Alpha 33 95 186% Absolute Return Funds 841 983 17% Overall 11,115 13,422 21% Source: Polar Capital. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 4
AUM Flows AUM at 31 March 2013 $7.2bn Gross inflows Total [long 8,725 hedge 199] $8,924m Gross outflows Total [long 3,812 hedge 170] $(3,982)m Net flows $4,942m Closure of UK team $(293)m Performance and currency movements $1,392m AUM at 31 March 2014 $13.2bn Gross inflows quarter 1 [long 1,013 hedge 116] $1,129m quarter 2 [long 1,078 hedge 63] $1,141m Gross outflows quarter 1 [long 1,341 hedge 39] $(1,380)m quarter 2 [long 1,175 hedge 23] $(1,198)m Net flows -$308m Closure of EMN team -$67m Performance and currency movements $548m AUM at 30 September 2014 $13.4bn Source: Polar Capital. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 5
AUM Analysis AUM split by strategy – September 2014 AUM split by business unit – September 2014 Japan 39.5% 15.1% North American Technology 14.1% Healthcare 8.7% Financials 7.3% 92.7% Long Only Emerging Markets 7.2% Alternative 7.3% European 5.7% Global Convertibles 1.5% Global 0.7% 0.1% UK Absolute Return AUM split by strategy – November 2014 AUM split by business unit – November 2014 Japan 34.8% North American 16.2% Technology 15.1% Healthcare 9.9% Financials 7.7% Long Only 92.1% Emerging Markets 7.5% Alternative 7.9% European 6.2% Global Convertibles 1.6% Global 0.7% UK Absolute Return 0.1% 0.1% European Income Source: Polar Capital. Totals may not sum due to rounding. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 6
Is Our Diversification Strategy Working? Not at the moment! March March March September November 2012 2013 2014 2014 2014 Technology 29% 17% 14% 14% 15% Japan 30% 33% 43% 40% 35% Europe 12% 10% - - - North America - - 13% 15% 16% Total 71% 60% 70% 69% 66% Number of teams 10 11 9 11 11 Number of teams with 3 7 7 7 7 assets > $500m Number of teams with 2 2 5 6 6 assets > $1 bn Source: Polar Capital, 30 November 2014. Based on the top 3 strategies. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 7
Fund Capacity Strategies AUM 30 September 2014 Capacity 2001 Technology $2bn+ $1.9bn 2001 Japan $5.3bn $6bn+ 2003 Europe $0.8bn $1bn+ 2007 Healthcare $1.1bn $1.5bn+ 2010 Financials $2.5bn+ $1.0bn 2010 Convertibles $0.2bn $1bn+ 2010 Emerging Markets $1.0bn $2bn+ 2011 North America $2.0bn $3bn+ 2012 Global Alpha $0.1bn $5bn+ 2014 UK Absolute - $1bn+ 2014 Pan Europe Income - $1bn+ Total $13.4bn $26bn+ Source: Polar Capital. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 8
Lipper Figures For Long Only Strategies 28 November 2014 3 months 6 months 1 year 3 years 5 years Since inception Strategies Quartile Quartile Quartile Quartile Quartile Quartile Japan 1 4 4 4 4 2 (Institutional JPY) 19/10/2001 Japan Alpha 2 3 3 4 n/a n/a (Retail USD) 31/10/2012 Healthcare Opportunities 1 3 1 1 1 1 (Retail USD) 3/12/2007 Biotechnology 1 2 2 1 n/a n/a (Retail USD) 1/11/2013 Emerging Markets Growth 2 2 2 3 2 n/a (Retail USD ) 1/12/2010 Emerging Markets Income 1 2 1 2 1 n/a (Institutional USD) 21/1/2011 Asian Financial 1 1 1 1 4 1 (Institutional USD) 5/12/1996 Financial Opportunities 1 2 1 1 3 n/a (Retail USD) 3/5/2011 Income Opportunities 1 2 2 1 1 1 (Retail GBP) 15/10/2009 Global Insurance 2 1 1 2 2 1 (Retail GBP) 19/10/1998 Global Technology 1 3 1 2 2 1 (Retail USD) 19/10/2001 North American 2 2 3 2 2 n/a (Retail USD) 15/11/2011 Global Alpha 2 2 3 3 n/a n/a (Retail USD) 30/11/2012 Source: Lipper. Basis: Net of fees. Currency as stated. Past performance is not indicative or a guarantee of future results. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 9
Alternative Strategies 28 November 2014 Annualised returns 3 years 5 years Inception Strategies Inception date YTD Forager (AX EUR) 1 August 2003 4.50% 9.28% 8.40% 10.89% Conviction (EUR) 1 April 2006 1.49% 3.42% 3.89% 5.75% ALVA (A USD) 1 November 2010 0.49% 6.40% n/a 5.88% Global Convertibles (Class I USD Acc) 1 10.61% 2 September 2013 2.44% n/a n/a Source: Polar Capital. Basis: Net of fees. Currency as stated. Past performance is not indicative or a guarantee of future results. 1. This Fund is a sub fund of the Polar Capital Funds Plc. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 10
Distribution Team of 23 Global Head of Secretarial Support Distribution Head of International Business Development North America EMEA Global Banks Institutional UK Sales Manager, Third Party Sales Sales Manager Global Head of Institutional Consultant Head of UK Discretionary (3 Partners) (France, Italy & Benelux) Distribution (London) Sales Manager Sales Manager (France, Geneva, Spain Client Services Exec (London) & Scandinavia) Third Party Sales Regional Sales Manager (Austria & Germany) (North) Head of International Business Development Regional Sales Manager (Switzerland & (South) Channel Islands) Client Services and Marketing Head of Client Services Head of Marketing Client Services/ Client Services Exec Client Services Exec Client Services Exec Client Services Exec Marketing Executive Marketing Executive Marketing Executive Source: Polar Capital. December 2014. Representative of dual role. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 11
Investor Mix Investor mix by geography Investor mix by holdings 38.1% Bank 55.0% UK Private Wealth Manager 15.1% 39.5% Polar Capital Investment Company 13.0% Europe Fund of Funds 9.7% USA 1.2% Asset Manager 9.6% Platform 5.2% Other 4.3% Family Office 1.6% Insurance Company 1.4% Pension Fund/Foundation 1.4% Consultants 1.4% Other 3.5% Source: Polar Capital, 30 September 2014. Totals may not sum due to rounding. For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 12
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