Results Presentation Six Months to 30 September 2019 Gavin - PowerPoint PPT Presentation

Results Presentation Six Months to 30 September 2019 Gavin Rochussen, Chief Executive Officer John Mansell, Executive Director November 2019 This presentation is for one-on-one use with non-US professional investors only www.polarcapital.co.uk

Agenda • Highlights • Market Perspective • Fund Performance • Fund Flows and AuM • Financial Review • Strategy Update • Summary and Outlook 2 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Highlights Net performance fee profits crystallised of £3.3m (2018 - £5.5m) The majority of AuM increased 4% to Funds in net inflow £14.3bn. But Adjusted EPS for the period declines 10% to 19.8p Investment in future Challenging Fund growth by increasing performance in September Fund capacity. This following rapid change in has increased equity style leadership with operating costs for “value” leading “growth” the period Received Fund Forum ESG Interim dividend maintained at award for the best EM Equity 8 pence Fund Source: Polar Capital, as at 30 September 2019. Past performance is not indicative or a guarantee of future results. 3 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Market Perspective Global indices vs volatility 40% • Increased market volatility in September, 30% although not the same level as Q4 2018 20% • All major equity indices have advanced during calendar 2019 10% • Q1 2019 had strongest recovery in any 0% quarter since the financial crisis -10% • Continued weakening of sterling over the period has benefitted AUM and revenue as a -20% significant proportion of portfolios are US dollar domiciled -30% MSCI North America Index MSCI All-Country World Index TOPIX MSCI Emerging Market Index DJ World Technology Index FTSE All-Share Index S&P 500 30d Volatility Source: Bloomberg, as at 31 October 2019. Past performance is not indicative or a guarantee of future results. 4 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Market Perspective Net sales of active long-term funds across Europe 40,000 30,000 • The environment for equities remains 20,000 challenging 10,000 • Fixed income is the only area of net inflows 0 across Europe since January -10,000 • Equity fund flows have been negative since -20,000 October 2018 -30,000 -40,000 -50,000 -60,000 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2018 2019 Mix Bond Equity Other Source: Broadridge Fund File and Fund Radar, as at 30 September 2019. Data excludes funds of funds, money market funds and ETFs (unless stated). 5 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Performance Annualised strategy performance against benchmark (since inception) 18.0% 16.0% 1 st Quartile 2 nd Quartile 14.0% 3 rd Quartile 4 th Quartile 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% Source: Polar Capital, 30 September 2019, Lipper quartile rankings as at 30 September 2019. Lipper Leaders fund ratings do not constitute and are not intended to constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. As a result, you should not make an investment decision on the basis of this information. Rather, you should use the Lipper ratings for informational purposes only. Certain information provided by Lipper may relate to securities that may not be offered, sold or delivered within the United States (or any State thereof) or to, or for the account or benefit of, United States persons. Lipper is not responsible for the accuracy, reliability or completeness of the information that you obtain from Lipper. In addition, Lipper will not be liable for any loss or damage resulting from information obtained from Lipper or any of its affiliates. For Lipper methodology please go to: http://lipperalpha.financial.thomsonreuters.com/wp-content/uploads/2015/11/S026849- Method-Lipper-Leaders-Ratings-System-International.pdf Past performance is not indicative or a guarantee of future returns. *Absolute return product, Benchmark: 3 month GBP LIBOR. ** Absolute return product, Fund does not have a benchmark. Funds ordered according to launch date. 6 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Performance % of UCITS Funds AuM in top quartile 90% 75% 68% • Majority of AuM is in the first quartile against the Lipper peer group over three years • Lipper quartile ranking is compelling over five years and since inception Top Quartile over 3 Years Top Quartile over 5 Years Top Quartile since inception Source: Polar Capital and Lipper, 30 September 2019. Totals may not sum due to rounding. Past performance is not indicative or a guarantee of future results. 7 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Performance Against Benchmarks Percentage of AuM that has outperformed benchmark YTD 16% • 16% of AuM outperformed benchmark in 2019 to 30 September 2019 3Y 75% • 61% of AuM outperformed benchmark in 2018 5Y 76% • 75% of AuM is ahead of benchmark over SI 73% three years and 76% over five years to 30 September 2019 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: Polar Capital, 30 September 2019. Totals may not sum due to rounding. Past performance is not indicative or a guarantee of future results. 8 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Fund Liquidity Fund Liquidity Total fund liquidity 100% 90% 80% • Fund liquidity continuously monitored 70% • Fund capacity addresses underlying liquidity 60% • 50% of the least liquid Polar Capital Fund can 50% be liquidated in 15 days 40% • 87% of AuM can be liquidated inside 10 days 30% 20% 10% 0% Less Than 1 Day Less Than 5 Days Less Than 10 Days Source: Polar Capital, 30 September 2019. Assumes 30% participation rate. 9 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

AuM 16.0 £14.7bn £14.3bn £13.8bn 14.0 £12.0bn 12.0 £10.6bn 10.0 £9.3bn 8.0 6.0 4.0 2.0 0.0 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Total AUM Avg AUM Source: Polar Capital, 30 September 2019. All figures quoted in Pounds Sterling. Totals may not sum due to rounding. Past performance is not indicative or a guarantee of future results. 10 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Net Flows By Strategy Flows Fund flows by team £300 Millions £200 £100 • Majority of Funds had positive net inflows, in £- the period -£100 • Net outflows were concentrated in Japan, -£200 North America and Healthcare -£300 -£400 • Rate of outflows from the Japan Fund is -£500 decreasing following the merger of the Japan -£600 Fund into the Japan Value Fund 6 months to Sept 19 12 months to Sept 19 Source: Polar Capital, 30 September 2019. Totals may not sum due to rounding. Past performance is not indicative or a guarantee of future results. 11 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Financial Review 12 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.

Financial Highlights Financial Highlights H1 2020 H1 2019 Change Average AuM £14.1bn £13.4bn +5% • Average AuM provided support by weak Net management fees £59.1m £57.3m +3% sterling (excluding research) Net management fee yield 84bps 85bps -1bp • Net management fees after currency hedging up 3% Core operating profit £21.3m £21.7m -2% • Core profits down 2% as a result of Core operating profit margin 36% 38% -2% investment for future growth and deferment Performance fee profit £3.3m £5.5m -40% costs related to prior periods Other income £0.8m £0.5m +60% • First interim dividend static compared to H1 2019 Profit before tax and share based payments on £25.4m £27.7m -8% • Core EPS for the half year (excluding preference shares performance fee) is 17p SBP on preference shares £(0.5)m £(0.4)m +25% Profit before tax £24.9m £27.3m -9% Adjusted EPS 1 19.8p 21.9p -10% Interim dividend per share 8.0p 8.0p - Cash and investments £108.7m £105.3m +3% Source: Polar Capital as at 30 September 2019. 1: Adjustment excludes IFRS costs of preference shares included in share based payments and includes deferred remuneration costs. 13 This presentation is for one-on-one use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.