Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — Q1 2011 Earnings Presentation
18 slides from Agf Management Limited Class B's earnings presentation, March 2011
Slide 1: AGF Management Limited Q1 2011 Financial & Operating Results
AGF MANAGEMENT LIMITED Q1 2011 Financial & Operating Results March 2011
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of March 30, 2011. Certain information presented in these remarks and in this presentation that is not historical factual information may constitute forward-looking information within the meaning of securitie
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS ˃ Blake C. Goldring, M.S.M., CFA, Chairman & Chief Executive Officer ˃ Robert J. Bogart, CPA, Executive Vice-President & Chief Financial Officer ˃ Mario Causarano, CA, President & Chief Operating Officer, AGF Trust Company 3
Slide 4: Overview of Q1 2011
AGF MANAGEMENT LIMITED: OVERVIEW OF Q1 2011 ˃ Investment Management AUM increased 19.7% to $52.5 billion ˃ Acuity acquisition closed on February 1, 2011 ˃ Acuity integration is on-schedule and has added immediate value to AGF ˃ Institutional business maintains good momentum - robust pipeline for new
Slide 5: Assets Under Management
AGF MANAGEMENT LIMITED: ASSETS UNDER MANAGEMENT 60 $52.5 50 $43.8 $42.9 $42.6 $43.0 40 22.2 18.7 18.5 18.2 17.6 ($ billions) 30 3.4 3.0 3.0 3.0 3.1 20 26.9 10 22.1 21.4 21.4 22.3 0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Retail Funds High-Net-Worth Institutional and Sub-advisory 5
Slide 6: Institutional Assets: Net Sales and Historical AUM Growth
INSTITUTIONAL ASSETS: NET SALES AND HISTORICAL AUM GROWTH 1,000 25 22.2 - 800 750 19.8 20 18.9 17.6 600 4.8 8.6 (C$ billion of AUM) ($233) In Net Institutional 4.8 ($ millions) Sales in Q1 2011 15 4.8 400 12.7 12.8 200 4.8 4.8 10 58 - 15.0 14.1 12.8 13.7 Sub-advisory Institutional Committed 5 Instit
Slide 7: Retail Gross Sales Growth: Q1 2011 vs Q1 2010
RETAIL GROSS SALES GROWTH: Q1 2011 vs Q1 2010 1,000 932 900 800 737 700 ($ millions) 600 500 400 300 200 100 - Q1 2010 Q1 2011 (including Acuity) 7
Slide 8: Q1 2011 Consolidated Results Overview
AGF MANAGEMENT LIMITED: Q1 2011 CONSOLIDATED RESULTS OVERVIEW FINANCIAL RESULTS Q1 2011 Q1 2010 % Change Revenue $162.9 $156.2 4.3% SG&A $50.4 $48.0 5.0% EBITDA $64.0 $67.1 (4.6%) EBITDA Margin 39.3% 43.0% (8.6%) Adjusted EBITDA $70.4 $67.1 4.9% Net Income $27.7 $30.6 (9.5%) EPS (Diluted) $0.30 $0.3
Slide 9: Investment Management Segment: Revenue, SG&A and EBITDA
INVESTMENT MANAGEMENT SEGMENT: REVENUE, SG&A AND EBITDA 139.3 140 100 132.4 130.7 132.2 90 130 Adjusted EBITDA 80 124.2 of 60.0 1 70 120 55.4 56.3 ($ millions) 54.4 50.2 60 ($ millions) 110 54.6 50 40 100 39.2 39.3 38.3 38.7 39.6 30 20 90 10 80 0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Revenue SG&A EBITDA EBI
Slide 10: Investment Management Segment: Adjusted EBITDA
INVESTMENT MANAGEMENT SEGMENT: ADJUSTED EBITDA Q1-11 TTM1 Q1-10 Average AUM ($ billions) 46.9 44.3 44.3 Average Retail 23.4 22.3 22.5 Average Institutional and H-N-W 23.5 22.0 21.8 Revenue (bps) 120 119 120 Less: Trailer Fees (bps) 32 32 32 SG&A (bps)2 36 37 38 EBITDA (bps) 3 52 50 50 1 Trailing twe
Slide 11: Acuity Integration
AGF MANAGEMENT LIMITED: ACUITY INTEGRATION ˃ On February 1, 2011 AGF completed the acquisition of Acuity ˃ Integration of Acuity is on-schedule and proceeding smoothly ˃ Acuity added an additional $7.5 billion on AUM to increase overall AGF AUM to $52.5 billion ˃ Acquisition and integration costs of
Slide 12: Investment Management Segment EBITDA per Share
INVESTMENT MANAGEMENT SEGMENT EBITDA PER SHARE $0.80 $0.65 $0.60 $0.05 $0.60 $0.54 $0.06 ($/share) $0.40 $0.20 $0.00 (1) Q1 10 Q1 11 One-Time Costs Acuity Q1 11 Adjusted Average (without Acuity) (one month) Diluted Shares 90.4m 92.0m 92.0m 12 (1) One-time costs includes $5.4 million in acquisition a
Slide 13: Trust Company Segment: Revenue, SG&A and EBITDA
TRUST COMPANY SEGMENT: REVENUE, SG&A AND EBITDA 30 24.8 24.3 25 23.9 22.8 22.8 20 ($ millions) 15 11.1 10.7 10.4 10.6 9.5 10 8.9 9.5 9.0 9.1 5 8.6 0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Revenue* SG&A EBITDA EBITDA Margin 46.4% 41.9% 43.6% 39.9% 37.7% *Net interest income, other revenue and RSP loan securit
Slide 14: Trust Company Segment: Trust Loan Assets and Loan Originations
TRUST COMPANY SEGMENT: TRUST LOAN ASSETS AND LOAN ORIGINATIONS LOAN ASSETS LOAN ORIGINATIONS 4.0 60.0 $3.5 3.5 $3.4 50.1 49.2 $3.2 $3.1 50.0 $3.0 43.9 43.7 3.0 11.5 39.6 40.0 2.5 2.1 2.1 7.0 ($ millions) ($ billions) 2.0 32.4 2.0 2.0 1.9 30.0 38.7 1.5 41.9 20.0 38.6 32.6 1.0 1.4 1.3 10.0 1.2 1.1 1.1
Slide 15: Trust Company Segment: Provision for Loan Losses and Efficiency Ratio
TRUST COMPANY SEGMENT: PROVISION FOR LOAN LOSSES AND EFFICIENCY RATIO 6 48.7 50 43.4 5 39.7 41.1 39.1 40 4.9 4.2 3.9 4.7 4 (percentage %) 3.5 30 ($ millions) 3 20 2 10 1 0 0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Loan Loss Provisions Efficiency Ratio 15
Slide 16: EPS and Adjusted EPS – Diluted
AGF MANAGEMENT LIMITED: EPS AND ADJUSTED EPS – DILUTED Adjusted EPS3: 0.34 (1) (2) $0.35 ($ /share) 0.34 0.30 0.31 0.30 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 1 Excluding $4.0 million, net of tax , of one-time accounting charges related to Smith & Williamson Holdings Limited in Q2 2010, adjusted EPS was $0.3
Slide 17: Shareholder Value – Dividend History
AGF MANAGEMENT LIMITED: SHAREHOLDER VALUE – 10 Year Dividend History Current Yield: 1.10 5.5%1 1.00 1.04 1.00 0.90 0.95 0.80 0.78 ($ /share) 0.70 0.69 0.60 0.50 0.56 0.40 0.41 0.30 0.30 0.20 0.26 0.22 0.10 0.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 17 1 Share price for current yield was
Slide 18: Questions
AGF Management Limited QUESTIONS Strength IN GiversifiCatiOn | sees deisas vot