Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — Q1 2016 Earnings Presentation
13 slides from Agf Management Limited Class B's earnings presentation, Mar 23, 2016
Slide 1: AGF Management Limited Earnings Conference Call First Quarter 2016
AGF MANAGEMENT LIMITED EARNINGS CONFERENCE CALL FIRST QUARTER 2016 MARCH 23RD, 2016
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of March 23rd, 2016. 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 securit
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS • Blake C. Goldring, CFA Chairman & Chief Executive Officer • Kevin McCreadie, CFA President & Chief Investment Officer • Robert J. Bogart Executive Vice-President & Chief Financial Officer 3
Slide 4: Today's Discussion
TODAY’S DISCUSSION • Highlights of the 1st Quarter • Business Updates • Retail Business • Investment Management • Institutional Business • Alternatives • Financial Results • Capital & Liquidity • Focus & Priorities 4
Slide 5: Q1 2016 Highlights
Q1 2016 HIGHLIGHTS Continued progress toward stated objectives • Highlights: • Earnings per share of $0.13 • AUM above median: 1 year 46%, 3 years 47% • 37% improvement in retail fund flows • Completed first close of Essential Infrastructure Fund • Board confirmed $0.08 dividend for Q1 2016 5
Slide 6: Retail Business Review
RETAIL BUSINESS REVIEW Continued improvement in retail fund flows • Retail net redemptions improved by 37% despite market volatility • Strong gross sales through strategic distribution partnerships • Good performance in key categories will drive continued improvement 6
Slide 7: Investment Teams & Performance
INVESTMENT TEAMS & PERFORMANCE Investment performance improvement held up despite rough market conditions • Investment in teams and capabilities is yielding results • AUM above median: 1 year 46%, 3 years 47% • Strong performance relative to peers • Fewer teams with better resources will continue to
Slide 8: Institutional Business Review & Pipeline
INSTITUTIONAL BUSINESS REVIEW & PIPELINE ($ millions) Gross Sales Commitments 368 Pipeline Q4 Redemption Notifications (359) Q4 Net Pipeline 9 • Emerging Markets flows have mirrored Gross Sales from Q4 Pipeline 158 market volatility Activity Redemptions from Q4 Pipeline (124) Q1 Additional Q1 Net Re
Slide 9: Summary of Financial Results
SUMMARY OF FINANCIAL RESULTS Sequential Quarter Quarter Over Quarter Fav / Fav / ($ millions, except per share amounts) Q1'16 Q4'151 Q1'16 Q1'15 (Unfav) (Unfav) Revenue 103.3 105.0 (1.6%) 103.3 111.7 (7.5%) SG&A 45.3 47.3 4.2% 45.3 44.8 (1.1%) EBITDA 27.3 25.5 7.0% 27.3 33.9 (19.5%) EBITDA Margin 26
Slide 10: Financial Results – BPS Detail
FINANCIAL RESULTS – BPS DETAIL EBITDA yield decline reflects lower AUM (bps of average AUM) Q1-16 TTM Average AUM ($B)1 32.3 33.9 Average Retail 17.3 18.4 Average Institutional and HNW 15.0 15.5 Revenue (bps)2 121 123 Less: Trailer Fees (bps) 37 38 3 SG&A (bps) 58 55 3 EBITDA (bps) 26 30 (1) Average
Slide 11: Free Cash Flow
FREE CASH FLOW Dividend payout ratio remains within an acceptable range Free Cash Flow Dividend % of Free Cash Flow (Payout Ratio) 20 200% 18.6 180% 16.8 17.0 160% ($ millions) 15.4 140% 120% 10 11.1 100% 57% 80% 44% 39% 38% 60% 34% 40% 20% - 0% Q1-15 1 Q2-15 Q3-15 Q4-15 Q1-16 11 (1) Q1 2015 payout
Slide 12: 2016 Focus & Priorities
2016 FOCUS & PRIORITIES Build on improved investment performance • Key Execution Points • Sustain investment performance improvement • Drive gross sales through retail product development and strategic partnerships • Integrate FFCM and leverage new product capability • Continue the development of th
Slide 13: Questions
QUESTIONS