AGF Management Limited Class B · TSX:AGF.B
AGF Management Limited Class B — Q3 2019 Earnings Presentation
14 slides from AGF Management Limited Class B's earnings presentation, Sep 25, 2019
Slide 1: AGF Management Limited Earnings Conference Call Third Quarter 2019
AGF Management Limited Earnings Conference Call Third Quarter 2019 September 25th, 2019
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements The forward looking information is provided as of September 25th, 2019. 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 sec
Slide 3: Conference Call Participants
Conference Call Participants Presenting Kevin McCreadie, CFA, MBA Chief Executive Officer & Chief Investment Officer Adrian Basaraba, CPA, CA, CFA Senior Vice-President & Chief Financial Officer Available for questions Judy G. Goldring, LL.B, LL.D, ICD.D President & Chief Administration Officer 3
Slide 4: Today's Discussion
Today’s Discussion • Smith & Williamson and Tilney Merger • Highlights of the 3rd Quarter of Fiscal 2019 • Business Updates • Financial Results • Capital & Liquidity • Focus & Priorities 4
Slide 5: Smith & Williamson and Tilney Merger
Smith & Williamson and Tilney Merger1 Deal Overview • Transaction creates UK’s leading integrated wealth management and professional services group • Over £45 billion in assets under management • Deal expected to close early 2020 Financial Terms • Total proceeds of £193 million (C$320 million)2 • Ca
Slide 6: Q3 2019 Highlights
Q3 2019 Highlights Continued progress toward stated objectives Continued momentum in liquid alt products digital growth to be launched strategy Private alternatives 2019 SG&A efficiency Diluted AUM reaches $2.4 billion initiative EPS of $0.18 on track 6
Slide 7: Line of Business Performance
Line of Business Performance ($ millions) Q3 2018 Q3 2019 Change Mutual funds 19,401 18,839 3% Institutional, Sub-advisory & ETF 12,694 10,391 18 % Private Client 5,714 5,778 1% Private Alternatives 1,009 2,413 139 % Total 38,818 37,421 4% 7
Slide 8: Mutual Fund Business Review
Mutual Fund Business Review IFIC Industry Net Sales ($B)1 AGF Retail Mutual Fund Net Sales ($M)2 45.2 21.7 (32) (103) (169) (8.6) TTM Ending TTM Ending TTM Ending Aug 31, 2017 Aug 31, 2018 Aug 31, 2019 Q3 2018 Q2 2019 Q3 2019 (1) Industry long-term funds net sales per IFIC. (2) Retail mutual fund ne
Slide 9: Financial Results
Financial Results Adjusted for one-time items noted in the MD&A and restated for IFRS 151 Sequential Quarter Year Over Year ($ millions, except per share amounts) Q3-19 Q2-19 Fav / (Unfav) Q3-19 Q3-182 Fav / (Unfav) Revenue 107.4 109.8 (2.2%) 107.4 112.6 (4.6%) SG&A 47.3 48.6 2.7% 47.3 47.1 (0.4%) C
Slide 10: Financial Results – BPS Detail
Financial Results – BPS Detail1,2 (bps of average AUM) Q3-19 TTM Average AUM excl. Private Alternatives ($B)3 35.1 35.7 Average Mutual Fund 18.2 18.2 Average Institutional, Sub-Advisory, ETFs & 16.9 17.4 Private Client Revenue (bps)4 110 109 Less: Trailer Fees (bps) 35 34 SG&A (bps)5 54 54 EBITDA be
Slide 11: Capital & Liquidity
Capital & Liquidity1 60 4 4 50 54 51 51 3 45 40 42 3 ($ millions) 2 30 2 20 60% 1 55% 49% 46% 49% 1 10 0 - (1) TTM Q3-FY18 TTM Q4-FY18 TTM Q1-FY19 TTM Q2-FY19 TTM Q3-FY19 TTM Adjusted FCF TTM Dividend to FCF % (1) Q2-2018 adjusted for one-time restructuring costs of $3.8m (net of tax). Q4-2017 adjus
Slide 12: 2019 Focus & Priorities
2019 Focus & Priorities Position AGF Deliver Maintain Leverage the to reach consistent and trajectory of repeatable $5 billion improvement in private investment in retail and platform alternative performance institutional assets 12
Slide 13: Appendix: Historical P&L excluding One-time Items and Restated for IFRS 15
Appendix: Historical P&L excluding One-time Items and Restated for IFRS 151 From continuing operations adjusted for one-time items and restated for IFRS 15 ($M, except per share data) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Total Average AUM excluding Private Alternatives 2 35,811 36,110 37,073 36
Slide 14: Thank You!
Thank You! To learn more about AGF’s history visit: www.agf.com/ca/en/about- agf/our-story