AGF Management Limited Class B · TSX:AGF.B
AGF Management Limited Class B — Q3 2010 Earnings Presentation
14 slides from AGF Management Limited Class B's earnings presentation, Sep 29, 2010
Slide 1: Q3 2010 Financial & Operating Results
AGF MANAGEMENT LIMITED Q3 2010 Financial & Operating Results September p 29,, 2010
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of September 29, 2010. Certain information presented in these remarks and in this p presentation that is not historical factual information may y constitute forward-lookingg information within the meaning of
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS • Blake C. Goldring, M.S.M., CFA, Chairman & Chief Executive Officer • Robert R b t JJ. B Bogart, t CPA, Senior S i Vi Vice-President P id t & Chi Chieff Fi Financial i l Officer Offi • Mario Causarano, CA, President & Chief Operating Officer, AGF Trust Company 3
Slide 4: Overview of Q3-2010
AGF MANAGEMENT LIMITED: OVERVIEW OF Q3-2010 Q3 2010 • AUM is at $42 $42.6 6 billion billion, up 3 3.8% 8% • Consolidated revenue is $148.7 million • EBITDA is $61.0 million, up 8.7% year-over-year • Strong capital position and profitability at AGF Trust • EPS (diluted) of $0.31; Adjusted EPS (dilute
Slide 5: Diversification Strategy
AGF MANAGEMENT LIMITED: DIVERSIFICATION STRATEGY Q3 2010 Q3-2010 Diversified by: y • Channel/Client Institutional & Strategic Mutual Accounts Funds $18.2B • Investment Style $21.4B • Geog Geography ap y High-Net- Worth $3.0B Total Assets: $42.6 Billion 5
Slide 6: Third Quarter Consolidated Results Overview
AGF MANAGEMENT LIMITED: THIRD QUARTER CONSOLIDATED RESULTS OVERVIEW FINANCIAL RESULTS Q3 2010 Q3 2009 % Change AUM $42,606 $41,034 3.8% Trust Loan Assets $3,241 $3,786 (14.4)% Revenue $148.7 $146.9 1.2% SG&A $47.3 $48.4 (2.3)% EBITDA $61.0 $56.1 8.7% EBITDA Margin 41.0% 38.2% 7.3% N t IIncome Net $2
Slide 7: Investment Management Operations: Revenue, SG&A and EBITDA
INVESTMENT MANAGEMENT OPERATIONS: REVENUE SG&A AND EBITDA REVENUE, 132.1 130.7 132.2 120.4 124.2 59.2 54.4 55.4 50.2 45.8 39.5 39.2 39.3 38.3 35.7 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Revenue SG&A EBITDA EBITDA Margin 38.0% 38 0% 44.8% 44 8% 41.6% 41 6% 41.9% 41 9% 40.4% 40 4% 7 All amounts in $ millions.
Slide 8: Investment Management Operations: EBITDA
INVESTMENT MANAGEMENT OPERATIONS: EBITDA Q3-10 TTM1 Q3-09 Average AUM ($ billions) 42.3 43.8 39.6 Average Retail 21.3 22.2 21.4 Average Institutional and H-N-W 21.0 21.6 18.2 Revenue (bps) 117 119 121 Less: Trailer Fees (bps) 31 31 33 SG&A (bps)2 39 38 42 EBITDA (bps) 47 50 46 1 Trailing twelve mont
Slide 9: Trust Company Operations: Revenue, SG&A and EBITDA
TRUST COMPANY OPERATIONS: REVENUE SG&A AND EBITDA REVENUE, 25.4 24.8 23.6 23.9 24.3 10.4 11.1 10.4 10.6 9.2 9.0 9.2 8.9 9.5 9.0 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Revenue* SG&A EBITDA EBITDA Margin g 36.2% 44.1% 46.4% 41.9% 43.6% *Net interest income, other revenue and RSP loan securitization income (los
Slide 10: Trust Company Operations: Net Interest Margin
TRUST COMPANY OPERATIONS: NET INTEREST MARGIN (NIM) 3.0 2.6 2.6 2.4 2.4 2.3 2.0 1.0 0.0 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 NIM (%) 10
Slide 11: Trust Company Operations: Provision for Loan Losses and Efficiency Ratio
TRUST COMPANY OPERATIONS: PROVISION FOR LOAN LOSSES AND EFFICIENCY RATIO 15 50% 41.5% 41.1% 39.7% 38 6% 38.6% 39 1% 39.1% 10 40% millions 7.2 $m 5 30% 4.9 4.7 4.0 3.9 0 20% Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Loan Loss Provisions Efficiency Ratio 11
Slide 12: EPS and Adjusted EPS
AGF MANAGEMENT LIMITED: EPS AND ADJUSTED EPS 0.50 Adjusted Adjusted EPS2: EPS3: $0.35 $ $0 34 $0.34 Adjusted EPS1: 0.34 0 25 0.25 $0.40 0.30 0 31 0.31 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 1Excluding a $9.8 million reduction in income taxes in Q4 2009, adjusted EPS was $0.40. 2Excluding $4.0 million, net of
Slide 13: Future Opportunities
AGF MANAGEMENT LIMITED: FUTURE OPPORTUNITIES • Retail – Strong relationships – Well positioned • Institutional – Good momentum – International growth • AGF Trust – Solid footing – Growth opportunities 13
Slide 14: Questions
QUESTIONS LONDON UK BOSTON TORONTO VANCOUVER SASKATOON HONG KONG DUBLIN BEIJING INNIPEG HALIFAX OTTAWA