AMG Reports Financial and Operating Results for the Fourth Quarter and Full Year 2012

  AMG Reports Financial and Operating Results for the Fourth Quarter and Full
  Year 2012

   Company Reports Economic EPS of $2.55; EPS of $1.40 for Fourth Quarter,
            Economic EPS of $7.71; EPS of $3.28 for Full Year 2012

Business Wire

BOSTON -- January 29, 2013

Affiliated Managers Group, Inc. (NYSE: AMG) today reported its financial and
operating results for the fourth quarter and full year 2012.

For the fourth quarter of 2012, Economic earnings per share (“Economic EPS”)
were $2.55, compared to $1.76 for the same period of 2011, while diluted
earnings per share for the fourth quarter of 2012 were $1.40, compared to
$0.77 for the same period of 2011. For the fourth quarter of 2012, Economic
net income was $136.5 million, compared to $92.5 million for the same period
of 2011. For the fourth quarter of 2012, Net income was $75.0 million,
compared to $40.3 million for the same period of 2011. For the fourth quarter
of 2012, EBITDA was $182.1 million, compared to $116.3 million for the same
period of 2011. (Economic EPS, Economic net income, and EBITDA are defined in
the attached tables, along with comparisons to the appropriate GAAP measure.)

For the year ended December 31, 2012, Economic net income was $408.8 million,
while EBITDA was $543.4 million, and Net income was $174.0 million. For the
year ended December 31, 2011, Economic net income was $351.0 million, while
EBITDA was $471.3 million, and Net income was $164.9 million.

Net client cash flows for the fourth quarter of 2012 were $5.1 billion, and
flows for the year ended December 31, 2012 were $30.1 billion. The aggregate
assets under management of AMG’s affiliated investment management firms were
approximately $432 billion at December 31, 2012.

“AMG’s results for the fourth quarter and full year 2012 reflected strong
performance across all areas of our business and the excellent execution of
our growth strategy, including continued outstanding growth from net client
cash flows, the ongoing expansion of our global distribution platform, and the
significant deployment of capital through our new investments strategy,”
stated Sean M. Healey, Chairman and Chief Executive Officer of AMG. “Our
Economic earnings per share were a record $7.71 for the year, an increase of
16% over 2011, and going forward, we see excellent opportunities to generate
further growth in earnings and shareholder value through both the organic
growth of our Affiliates as well as the addition of outstanding new
Affiliates.”

“Our Affiliates produced strong investment performance in the areas which are
most attractive to global clients for the alpha-generating portions of their
portfolios, including global and emerging markets equities and alternatives,
which collectively generate over 70% of our EBITDA,” Mr. Healey added. “With
industry-leading long-term track records in these product areas at Affiliates
such as Tweedy, Browne, Harding Loevner, and Genesis in equities, and
ValueAct, AQR, and BlueMountain in alternatives, we are well-positioned for
continued strong organic growth. In addition, our alternative products
delivered excellent absolute returns and meaningful performance fees during
the year.”

Mr. Healey continued, “Our global distribution strategy, which complements
Affiliate-level marketing efforts with the centralized platform of AMG’s
global franchise, has now generated exceptional organic growth from net client
cash flows for eleven consecutive quarters – including over $30 billion of net
client cash flows in 2012, a period in which investor risk appetite remained
broadly muted. The strategic investment we have made over the past five years
in extending the breadth and depth of our Affiliates’ marketing reach around
the globe has generated substantial incremental new business in every coverage
region, and with new offices in Dubai and Zurich and additional resources in
Germany and Switzerland within the past year, we expect continued momentum
going forward. Given the increasing client demand for differentiated,
alpha-generating strategies from specialist firms, and the significant
opportunities we see to win new business and market share around the world, we
will continue to add capabilities in key markets and channels globally in
2013.”

“Finally, we were very pleased with the successful execution of our new
investments strategy in 2012, with the addition of Veritable, Yacktman, and
our significant additional investment in BlueMountain,” Mr. Healey concluded.
“Our forward new investment pipeline is strong and diverse, and includes
traditional, alternative, and wealth management firms globally. We are making
excellent progress in this area as we actively evaluate an array of
prospective Affiliates, and we will continue to benefit from our reputation as
the partner of choice to the best boutique firms around the world. Given AMG’s
unique competitive position and our outstanding track record of Affiliate
investments, we are confident in our ability to add materially to our earnings
growth through accretive Affiliate investments going forward.”

About Affiliated Managers Group

AMG is a global asset management company with equity investments in leading
boutique investment management firms. AMG’s innovative partnership approach
allows each Affiliate’s management team to own significant equity in their
firm while maintaining operational autonomy. AMG’s strategy is to generate
growth through the internal growth of existing Affiliates, as well as through
investments in new Affiliates. In addition, AMG provides centralized
assistance to its Affiliates in strategic matters, marketing, distribution,
product development and operations. As of December 31, 2012, the aggregate
assets under management of AMG’s Affiliates were approximately $432 billion in
more than 350 investment products across a broad range of investment styles,
asset classes and distribution channels. For more information, please visit
the Company’s website at www.amg.com.

Certain matters discussed in this press release may constitute forward-looking
statements within the meaning of the federal securities laws. Actual results
and the timing of certain events could differ materially from those projected
in or contemplated by the forward-looking statements due to a number of
factors, including changes in the securities or financial markets or in
general economic conditions, the availability of equity and debt financing,
competition for acquisitions of interests in investment management firms, the
ability to close pending investments, the investment performance of our
Affiliates and their ability to effectively market their investment
strategies, and other risks detailed from time to time in AMG’s filings with
the Securities and Exchange Commission. Reference is hereby made to the “Risk
Factors” set forth in the Company’s Form 10-K for the year ended December 31,
2011.

AMG routinely posts information that may be significant for investors in the
Investor Relations section of its website, and encourages investors to consult
that section regularly. For additional information, please visit www.amg.com.

                           Financial Tables Follow

A teleconference will be held with AMG’s management at 11:00 a.m. Eastern time
today. Parties interested in listening to the teleconference should dial
1-877-407-9210 (domestic calls) or 1-201-689-8049 (international calls)
starting at 10:45 a.m. Eastern time. Those wishing to listen to the
teleconference should dial the appropriate number at least ten minutes before
the call begins.

The teleconference will also be available for replay beginning approximately
one hour after the conclusion of the call. To hear a replay of the call,
please dial 1-877-660-6853 (domestic calls) or 1-201-612-7415 (international
calls) and provide conference ID 407209. The live call and replay of the
session, and additional financial information referenced during the
teleconference, can also be accessed via the Web at
http://www.amg.com/InvestorRelations/.



Affiliated Managers Group, Inc.
Financial Highlights
(in millions, except per share data)
                                                            
                                                   Three Months   Three Months
                                                   Ended          Ended
                                                   12/31/11       12/31/12
                                                                  
Revenue                                            $   402.4      $   491.0
                                                                  
Net income (controlling interest)                  $   40.3       $   75.0
                                                                  
Economic net income (A)                            $   92.5       $   136.5
                                                                  
EBITDA (B)                                         $   116.3      $   182.1
                                                                  
                                                                  
Average shares outstanding - diluted                   52.6           55.5
                                                                  
Earnings per share - diluted                       $   0.77       $   1.40
                                                                  
Average shares outstanding - adjusted                  52.6           53.6
diluted (C)
                                                                  
Economic earnings per share (C)                    $   1.76       $   2.55
                                                                  
                                                                  
                                                                  
                                                   December 31,   December 31,
                                                   2011           2012
                                                                  
Cash and cash equivalents                          $   449.5      $   430.4
                                                                  
Senior bank debt                                   $   250.0      $   325.0
                                                                  
Senior notes (D)                                   $   -          $   340.0
                                                                  
Senior convertible securities (E)                  $   435.6      $   450.1
                                                                  
Junior convertible trust preferred                 $   512.6      $   515.5
securities (E)
                                                                  
Stockholders’ equity                               $   1,866.0    $   2,067.8
                                                                      
                                                                      

Affiliated Managers Group, Inc.
Financial Highlights
(in millions, except per share data)
                                                               
                                                         Year        Year
                                                         Ended       Ended
                                                         12/31/11    12/31/12
                                                                     
Revenue                                                  $ 1,704.8   $ 1,805.5
                                                                     
Net income (controlling interest)                        $ 164.9     $ 174.0
                                                                     
Economic net income (A)                                  $ 351.0     $ 408.8
                                                                     
EBITDA (B)                                               $ 471.3     $ 543.4
                                                                     
                                                                     
                                                                     
Average shares outstanding - diluted                       53.0        53.0
                                                                     
Earnings per share - diluted                             $ 3.11      $ 3.28
                                                                     
Average shares outstanding - adjusted diluted              53.0        53.0
(C)
                                                                     
Economic earnings per share (C)                          $ 6.62      $ 7.71
                                                                       
                                                                       

Affiliated Managers Group, Inc.
Reconciliations of Earnings Per Share Calculation
(in millions, except per share data)
                                                            
                                                   Three Months   Three Months
                                                   Ended          Ended
                                                   12/31/11       12/31/12
                                                                  
Net income (controlling interest)                  $    40.3      $    75.0
Convertible securities interest expense,               -             2.7
net (F)
Net income (controlling interest), as              $    40.3      $    77.7
adjusted
                                                                  
Average shares outstanding - diluted                    52.6           55.5
                                                                  
Earnings per share - diluted                       $    0.77      $    1.40
                                                                  
                                                                  
                                                   Year           Year
                                                   Ended          Ended
                                                   12/31/11       12/31/12
                                                                  
Net income (controlling interest)                  $    164.9     $    174.0
Convertible securities interest expense,               -             -
net (F)
Net income (controlling interest), as              $    164.9     $    174.0
adjusted
                                                                  
Average shares outstanding - diluted                    53.0           53.0
                                                                  
Earnings per share - diluted                       $    3.11      $    3.28
                                                                       
                                                                       

Affiliated Managers Group, Inc.
Reconciliations of Average Shares Outstanding
(in millions)
                                                            
                                                   Three Months   Three Months
                                                   Ended          Ended
                                                   12/31/11       12/31/12  
                                                                  
Average shares outstanding - diluted               52.6           55.5
Assumed issuance of 2008 Senior                    -              -
Convertible Notes shares
Assumed issuance of Trust Preferred shares         -              (2.0      )
Dilutive impact of 2008 Senior Convertible         -              0.1
Notes shares
Dilutive impact of Trust Preferred shares          -              -         
Average shares outstanding - adjusted              52.6           53.6      
diluted (C)
                                                                  
                                                                  
                                                                  
                                                   Year           Year
                                                   Ended          Ended
                                                   12/31/11       12/31/12  
                                                                  
Average shares outstanding - diluted               53.0           53.0
Assumed issuance of 2008 Senior                    -              -
Convertible Notes shares
Assumed issuance of Trust Preferred shares         -              -
Dilutive impact of 2008 Senior Convertible         -              -
Notes shares
Dilutive impact of Trust Preferred shares          -              -         
Average shares outstanding - adjusted              53.0           53.0      
diluted (C)
                                                                            
                                                                            

Affiliated Managers Group, Inc.
Operating Results
(in millions)
                                                           
Assets Under Management
                                                                   
Statement of
Changes -
Quarter to Date
                        Mutual        Institutional   High Net     Total
                        Fund                          Worth
                                                                   
Assets under
management,             $ 117,852     $  243,756      $ 54,506     $ 416,114
September 30,
2012
Client cash               9,542          10,238         2,752        22,532
inflows
Client cash              (7,686  )     (7,055   )    (2,721 )    (17,462 )
outflows
Net client cash          1,856        3,183        31         5,070   
flows
Investment               2,166        7,398        1,019      10,583  
performance
Assets under
management,             $ 121,874    $  254,337     $ 55,556    $ 431,767 
December 31,
2012
                                                                   
                                                                   
                                                                   
Statement of
Changes - Year
to Date
                        Mutual        Institutional   High Net     Total
                        Fund                          Worth
                                                                   
Assets under
management,             $ 85,222      $  205,658      $ 36,582     $ 327,462
December 31,
2011
New investments           14,773         13             13,219       28,005
(G)
Client cash               35,027         43,541         10,928       89,496
inflows
Client cash              (25,282 )     (24,918  )    (9,154 )    (59,354 )
outflows
Net client cash          9,745        18,623       1,774      30,142  
flows
Investment                12,308         30,796         4,359        47,463
performance
Other (H)                (174    )     (753     )    (378   )    (1,305  )
Assets under
management,             $ 121,874    $  254,337     $ 55,556    $ 431,767 
December 31,
2012
                                                                             
                                                                             

Affiliated Managers Group, Inc.
Operating Results
(in millions)
                                                     
Financial Results
                                                             
                                                             
                          Three                  Three
                          Months                 Months
                          Ended       Percent    Ended       Percent
                          12/31/11    of Total   12/31/12    of Total
Revenue
Mutual Fund               $ 168.0     42    %    $ 217.1     44    %
Institutional               200.8     50    %      224.3     46    %
High Net Worth             33.6      8     %     49.6      10    %
                          $ 402.4     100   %    $ 491.0     100   %
                                                             
EBITDA (B)
Mutual Fund               $ 30.2      26    %    $ 49.7      27    %
Institutional               75.2      65    %      116.3     64    %
High Net Worth             10.9      9     %     16.1      9     %
                          $ 116.3     100   %    $ 182.1     100   %
                                                             
                                                             
                                                             
                                                             
                          Year                   Year
                          Ended       Percent    Ended       Percent
                          12/31/11    of Total   12/31/12    of Total
Revenue
Mutual Fund               $ 723.7     43    %    $ 774.4     43    %
Institutional               841.4     49    %      861.3     48    %
High Net Worth             139.7     8     %     169.8     9     %
                          $ 1,704.8   100   %    $ 1,805.5   100   %
                                                             
EBITDA (B)
Mutual Fund               $ 151.2     32    %    $ 169.5     31    %
Institutional               288.3     61    %      323.5     60    %
High Net Worth             31.8      7     %     50.4      9     %
                          $ 471.3     100   %    $ 543.4     100   %
                                                                   
                                                                   

Affiliated Managers Group, Inc.
Reconciliations of Performance and Liquidity Measures
(in millions)
                                                            
                                                                  
                                                   Three Months   Three Months
                                                   Ended          Ended
                                                   12/31/11       12/31/12
                                                                  
Net income (controlling interest)                  $  40.3        $  75.0
Intangible amortization and impairments               36.1           36.9
Intangible-related deferred taxes                     7.0            17.5
Imputed interest and contingent payment               1.6            5.9
arrangements
Affiliate equity expense                             7.5          1.2     
Economic net income (A)                            $  92.5       $  136.5   
                                                                  
Cash flow from operations                          $  158.6       $  186.2
Interest expense, net of non-cash items               16.4           21.7
Current tax provision                                 13.1           29.9
Income from equity method investments, net            22.9           67.5
of distributions
Changes in assets and liabilities and                (94.7   )     (123.2  )
other adjustments
EBITDA (B)                                         $  116.3      $  182.1   
Holding company expenses                             21.0         28.8    
EBITDA Contribution                                $  137.3      $  210.9   
                                                                  
                                                   Year           Year
                                                   Ended          Ended
                                                   12/31/11       12/31/12
                                                                  
Net income (controlling interest)                  $  164.9       $  174.0
Intangible amortization and impairments               117.0          220.9
Intangible-related deferred taxes                     43.2           17.6
Imputed interest and contingent payment               14.7           (6.8    )
arrangements
Affiliate equity expense                             11.2         3.1     
Economic net income (A)                            $  351.0      $  408.8   
                                                                  
Cash flow from operations                          $  708.5       $  633.2
Interest expense, net of non-cash items               65.7           74.8
Current tax provision                                 45.0           61.0
Income from equity method investments, net            (22.7   )      61.9
of distributions
Changes in assets and liabilities and                (325.2  )     (287.5  )
other adjustments
EBITDA (B)                                         $  471.3      $  543.4   
Holding company expenses                             82.1         94.7    
EBITDA Contribution                                $  553.4      $  638.1   
                                                                             
                                                                             

Affiliated Managers Group, Inc.
Consolidated Statements of Income
(in millions, except per share data)
                                                              
                             Three Months Ended      Year Ended
                             December 31,            December 31,
                             2011        2012        2011          2012
                                                                   
Revenue                      $ 402.4     $ 491.0     $ 1,704.8     $ 1,805.5
                                                                   
Operating expenses:
Compensation and related       173.9       218.7       718.8         784.7
expenses
Selling, general and           89.2        99.2        350.8         366.9
administrative
Intangible amortization        31.3        31.0        97.7          200.0
and impairments (I)
Depreciation and other         3.4         3.5         15.0          14.1
amortization
Other operating expenses      9.4       11.7      36.4        39.4    
                              307.2     364.1     1,218.7     1,405.1 
Operating income              95.2      126.9     486.1       400.4   
                                                                   
Non-operating (income) and
expenses:
Investment and other           (1.8  )     (1.8  )     5.0           (22.0   )
(income) loss
Income from equity method      (32.6 )     (82.3 )     (72.7   )     (129.7  )
investments
Interest expense               18.2        24.2        73.8          83.0
Imputed interest expense
and contingent
payment arrangements (J)      2.4       9.7       27.3        (26.1   )
                              (13.8 )    (50.2 )    33.4        (94.8   )
                                                                   
Income before income taxes     109.0       177.1       452.7         495.2
                                                                   
Income taxes (K)              19.9      37.8      93.1        83.8    
Net income                     89.1        139.3       359.6         411.4
                                                                   
Net income
(non-controlling              (48.8 )    (64.3 )    (194.7  )    (237.4  )
interests)
Net income (controlling      $ 40.3     $ 75.0     $ 164.9      $ 174.0   
interest)
                                                                   
Average shares outstanding     51.5        52.1        51.8          51.7
- basic
Average shares outstanding     52.6        55.5        53.0          53.0
- diluted
                                                                   
Earnings per share - basic   $ 0.78      $ 1.44      $ 3.18        $ 3.36
Earnings per share -         $ 0.77      $ 1.40      $ 3.11        $ 3.28
diluted
                                                                   
                                                                   

Affiliated Managers Group, Inc.
Consolidated Balance Sheets
(in millions)
                                               December 31,  December 31,
                                                   2011           2012
Assets
Current assets:
Cash and cash equivalents                          $  449.5       $  430.4
Investment advisory fees receivable                   214.9          255.5
Investments in marketable securities                  100.4          128.9
Unsettled fund share receivables                      34.5           40.1
Prepaid expenses and other current assets            77.1         57.4    
Total current assets                                  876.4          912.3
                                                                  
Fixed assets, net                                     69.1           81.5
Equity investments in Affiliates                      615.8          1,031.3
Acquired client relationships, net                    1,321.1        1,585.5
Goodwill                                              2,117.3        2,355.2
Other assets                                         219.2        221.3   
Total assets                                       $  5,218.9    $  6,187.1 
                                                                  
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities           $  343.6       $  324.7
Unsettled fund share payables                         40.8           39.8
Payables to related party                            33.2         11.3    
Total current liabilities                             417.6          375.8
                                                                  
Senior bank debt                                      250.0          325.0
Senior notes (D)                                      -              340.0
Senior convertible securities (E)                     435.6          450.1
Junior convertible trust preferred                    512.6          515.5
securities (E)
Deferred income taxes                                 506.0          513.7
Other long-term liabilities                          145.7        164.7   
Total liabilities                                     2,267.5        2,684.8
                                                                  
Redeemable non-controlling interests                  451.8          477.5
                                                                  
Equity:
Common stock                                          0.5            0.5
Additional paid-in capital                            927.5          852.1
Accumulated other comprehensive income                50.0           79.1
Retained earnings                                    1,176.7      1,350.7 
                                                      2,154.7        2,282.4
Less treasury stock, at cost                         (288.7  )     (214.6  )
Total stockholders’ equity                            1,866.0        2,067.8
                                                                  
Non-controlling interests                            633.6        957.0   
Total equity                                         2,499.6      3,024.8 
Total liabilities and equity                       $  5,218.9    $  6,187.1 
                                                                  
                                                                  

Affiliated Managers Group, Inc.
Consolidated Statements of Cash Flow
(in millions)
                         Three Months             Year
                             Ended                     Ended
                             December 31,              December 31,
                             2011        2012         2011        2012
Cash flow from
operating
activities:
Net income                   $ 89.1       $ 139.3      $ 359.6      $ 411.4
Adjustments to
reconcile Net income
to net cash flow
from operating
activities:
Intangible
amortization and               31.3         31.0         97.7         200.0
impairments
Amortization of                1.8          2.5          8.1          8.2
issuance costs
Depreciation and               3.4          3.5          15.0         14.1
other amortization
Deferred income tax            3.5          5.3          35.2         11.1
provision
Imputed interest
expense and                    2.4          9.7          27.3         (26.1  )
contingent payment
arrangements
Income from equity
method investments,            (32.6  )     (82.3  )     (72.7  )     (129.7 )
net of amortization
Distributions
received from equity           17.9         25.2         128.3        104.7
method investments
Tax benefit from
exercise of stock              0.2          2.1          1.1          3.5
options
Share-based                    11.1         23.5         30.3         47.6
compensation
Affiliate equity               13.1         12.3         22.1         21.7
expense
Other adjustments              1.9          11.3         21.3         12.6
Changes in assets
and liabilities:
(Increase) decrease
in investment                  4.3          (13.5  )     22.5         (34.8  )
advisory fees
receivable
(Increase) decrease
in prepaids and                6.3          8.7          (2.8   )     (4.2   )
other current assets
(Increase) decrease            0.2          (0.3   )     (1.5   )     (2.8   )
in other assets
(Increase) decrease
in unsettled fund              22.6         10.7         5.9          (4.5   )
shares receivable
Increase (decrease)
in unsettled fund              (5.0   )     (13.0  )     2.0          (2.3   )
shares payable
Increase (decrease)
in accounts payable,
accrued liabilities
and
other long-term               (12.9  )    10.2       9.1        2.7    
liabilities
Cash flow from                158.6      186.2      708.5      633.2  
operating activities
Cash flow used in
investing
activities:
Investments in                 -            (42.1  )     (13.3  )     (797.4 )
Affiliates
Purchase of fixed              (7.7   )     (10.1  )     (16.1  )     (20.0  )
assets
Purchase of
investment                     (0.8   )     (5.3   )     (49.2  )     (19.1  )
securities
Sale of investment            -          3.1        10.9       34.2   
securities
Cash flow used in             (8.5   )    (54.4  )    (67.7  )    (802.3 )
investing activities
Cash flow from (used
in) financing
activities:
Borrowings of senior           250.0        75.0         360.0        630.0
bank debt
Repayments of senior           (210.0 )     (195.0 )     (570.0 )     (555.0 )
bank debt
Issuance of senior             -            140.0        -            340.0
notes
Issuance of common             6.8          27.7         28.0         73.4
stock
Repurchase of common           (13.0  )     -            (61.0  )     (60.9  )
stock
Issuance costs                 (5.1   )     (4.4   )     (13.6  )     (10.4  )
Excess tax benefit
from exercise of               2.2          10.4         7.1          22.0
stock options
Settlement of                  (4.7   )     -            (0.8   )     -
treasury lock
Note payments                  8.3          (1.5   )     (72.5  )     (3.6   )
Distributions to
non-controlling                (52.1  )     (43.7  )     (167.6 )     (181.4 )
interests
Affiliate equity
issuances and                 (6.6   )    (82.8  )    (13.4  )    (107.9 )
repurchases
Cash flow from (used
in) financing                 (24.2  )    (74.3  )    (503.8 )    146.2  
activities
                                                                    
Effect of foreign
exchange rate                  0.3          0.3          (0.8   )     3.8
changes on cash and
cash equivalents
Net increase
(decrease) in cash             126.2        57.8         136.2        (19.1  )
and cash equivalents
Cash and cash
equivalents at                323.3      372.6      313.3      449.5  
beginning of period
Cash and cash
equivalents at end           $ 449.5     $ 430.4     $ 449.5     $ 430.4  
of period
                                                                             
                                                                             

Affiliated Managers Group, Inc.
Notes
(in millions, except per share data)
    
      Under our Economic net income definition, we add to Net income
      (controlling interest) amortization (including equity method
      amortization) and impairments, deferred taxes related to intangible
      assets, non-cash imputed interest expense (principally related to the
      accounting for convertible securities and contingent payment
      arrangements) and certain Affiliate equity expenses. We consider
(A)   Economic net income an important measure of our financial performance,
      as we believe it best represents operating performance before non-cash
      expenses relating to the acquisition of interests in our affiliated
      investment management firms, and it is therefore employed as our
      principal performance benchmark. This non-GAAP performance measure is
      provided in addition to, but not as a substitute for, Net income;
      Economic net income is not a liquidity measure, and should not be used
      in place of liquidity measures calculated under GAAP.
      
      We add back amortization and impairments attributable to acquired client
      relationships because these expenses do not correspond to the changes in
      the value of these assets, which do not diminish predictably over time.
      The portion of deferred taxes generally attributable to intangible
      assets (including goodwill) is added back because we believe it is
      unlikely these accruals will be used to settle material tax obligations.
      We add back non-cash expenses relating to certain transfers of equity
      between Affiliate management partners when these transfers have no
      dilutive effect to shareholders.
      
      EBITDA is defined as earnings before interest expense, income taxes,
      depreciation and amortization. This supplemental non-GAAP liquidity
      measure is provided in addition to, but not as a substitute for, cash
      flow from operations. As a measure of liquidity, we believe EBITDA is
(B)   useful as an indicator of our ability to service debt, make new
      investments and meet working capital requirements. EBITDA, as calculated
      by us, may not be consistent with computations of EBITDA by other
      companies. In reporting EBITDA by segment, Affiliate expenses are
      allocated to a particular segment on a pro rata basis with respect to
      the revenue generated by that Affiliate in such segment.
      
      Economic earnings per share represents Economic net income divided by
      the adjusted diluted average shares outstanding. In this calculation,
      the potential share issuance in connection with our convertible
      securities is measured using a “treasury stock” method. Under this
      method, only the net number of shares of common stock equal to the value
      of the contingently convertible securities and the junior convertible
      trust preferred securities in excess of par, if any, are deemed to be
(C)   outstanding. We believe the inclusion of net shares under a treasury
      stock method best reflects the benefit of the increase in available
      capital resources (which could be used to repurchase shares of common
      stock) that occurs when these securities are converted and we are
      relieved of our debt obligation. This method does not take into account
      any increase or decrease in our cost of capital in an assumed
      conversion. Economic earnings per share is not a liquidity measure, and
      should not be used in place of liquidity measures calculated under GAAP.
      
      In the third and fourth quarters of 2012, we sold $200.0 aggregate
(D)   principal amount of 6.375% Senior Notes due 2042 and $140.0 aggregate
      principal amount of 5.25% Senior Notes due 2022, respectively.
      
      We have bifurcated our convertible debt securities into their debt and
      equity components on our balance sheet. The principal amount at maturity
(E)   of the senior convertible notes due 2038 was $460.0 at December 31, 2011
      and December 31, 2012. The principal amount at maturity of the junior
      convertible trust preferred securities was $730.8 at December 31, 2011
      and December 31, 2012, comprised of $300.0 due 2036 and $430.8 due 2037.
      
      Convertible securities interest expense, net includes the interest
(F)   expense, net of tax, associated with our dilutive convertible
      securities.
      
(G)   In the second quarter of 2012, we completed investments in Yacktman
      Asset Management Co. and Veritable, LP.
      
      Other includes assets under management attributable to Affiliate product
(H)   transitions, new investment client transitions and transfers of our
      interests in certain Affiliated investment management firms, the
      financial effects of which are not material to our ongoing results.
      
      In the first and second quarters of 2012, we reduced the carrying value
(I)   of certain of our indefinite-lived intangible assets and, accordingly,
      recorded pre-tax expenses of $8.7 and $93.5, respectively.
      
      In the first and second quarters of 2012, we adjusted our estimate of
      our contingent payment obligations and, accordingly, recorded pre-tax
(J)   gains attributable to the controlling interest of $5.0 and $34.6,
      respectively. In the fourth quarter of 2012, we adjusted our estimate of
      our contingent payment obligations and, accordingly, recorded a pre-tax
      expense attributable to the controlling interest of $3.8.
      
      Our consolidated income tax provision includes taxes attributable to the
(K)   controlling interest, and to a lesser extent, taxes attributable to
      non-controlling interests, as follows:


                           Three Months Ended      Year Ended
                                December 31,             December 31,
                                2011        2012        2011       2012
      Current income            $  13.1      $ 29.9      $ 45.0      $ 61.0
      taxes
      Intangible-related           7.0         22.6        43.2        22.7
      deferred taxes (1)
      Other deferred              (2.3  )    (17.0 )    (4.0  )    (12.1 )
      taxes
      Taxes attributable
      to controlling               17.8        35.5        84.2        71.6
      interest
      Taxes attributable
      to non-controlling          2.1       2.3       8.9       12.2  
      interests
      Total income taxes        $  19.9     $ 37.8     $ 93.1     $ 83.8  
                                                                     
      Income before taxes
      (controlling              $  58.1      $ 110.5     $ 249.1     $ 245.6
      interest)
                                                                     
      Effective tax rate           30.6  %     32.1  %     33.8  %     29.2  %
      (2)
                                                                     
      (1) Intangible-related deferred taxes for the three months and year
      ended December 31, 2012 include $5.1 related to a one-time item not
      added back for the calculation of Economic net income.
      (2) Taxes attributable to controlling interests divided by controlling
      interest share of the consolidated income before taxes.

Contact:

Affiliated Managers Group, Inc.
Investor Relations:
Alexandra Lynn
(617) 747-3300
ir@amg.com
or
Media Relations:
Laura O’Brien
(617) 747-3300
pr@amg.com
 
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