AGF Management Limited Class B · TSX:AGF.B
AGF Management Limited Class B — CIBC World Markets Conference 2006
23 slides from AGF Management Limited Class B's conference presentation, Oct 4, 2006
Slide 1: AGF Management Limited: Focused on Growth
AGF MANAGEMENT LIMITED FOCUSED ON GROWTH CIBC WORLD MARKETS CONFERENCE WEDNESDAY OCTOBER 4, 2006 1
Slide 2: Forward-Looking Information
FORWARD-LOOKING INFORMATION 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 securities laws. Actual results could differ materially from a conclusion, forecast or proje
Slide 3: AGF: Focused on Growth
AGF: FOCUSED ON GROWTH A Canadian Leader with $39.2 B Total AUM International Investment Management Operations Established in 1957 50-Year Track Record As at September 30, 2006 3
Slide 4: AGF: Corporate Profile
AGF: CORPORATE PROFILE AGF MANAGEMENT LTD Investment Trust Company Other Management Operations Mutual Funds Consumer Loans Unisen Institutional Mortgage Loans Smith & Williamson Private Investment Investmaster Management (PIM) 4
Slide 5: AGF Management Ltd: Capital Allocation
AGF MANAGEMENT LTD: CAPITAL ALLOCATION AGF Trust YTD annualized Dividends FCF of $120 MM Share buybacks Acquisitions 5
Slide 6: AGF Management Ltd: Distribution
AGF MANAGEMENT LTD: DISTRIBUTION BROAD DISTRIBUTION PLATFORM FINANCIAL INSURANCE BROKERS BANKS PLANNERS COMPANIES 6
Slide 7: AGF Management Ltd: Product Offering
AGF MANAGEMENT LTD: PRODUCT OFFERING INDUSTRY • The top 4 categories represent 94.2% of industry net sales, as follows: – #1 Canadian Income Balanced (28.1%) – #2 Canadian Dividend & Equity Income (25.3%) – #3 Canadian Bond (24.1%) – #4 Canadian Balanced (16.7%) Source: IFIC 7 For the 7 months ended
Slide 8: Mutual Funds: Best Investment Performance Among Top Firms
MUTUAL FUNDS: BEST INVESTMENT PERFORMANCE AMONG TOP FIRMS % of Funds in First Quartile at August 31, 2006 for the Top 10 Mutual Fund Providers* One Year Three Year AGF 57% 40% RBC Asset Management 41% 37% Investors Group 28% 18% Fidelity 28% 31% BMO 28% 23% CI Investments 24% 39% TD Asset Management
Slide 9: Mutual Funds: Best Growth in Gross Sales Among Top Firms
MUTUAL FUNDS: BEST GROWTH IN GROSS SALES AMONG TOP FIRMS Gross Sales % Change Calendar YTD at August 2006 vs August 2005 45 41 35 28 28 25 20 15 10 9 5 3 3 1 -5 -5 -7 -15 -25 Franklin BMO Industry AGF RBC Fidelity IG CIBC Mackenzie TD CI Templeton 9 Data Source: Investor Economics
Slide 10: Mutual Funds: Net Sales - The Tide Has Turned
MUTUAL FUNDS: NET SALES - THE TIDE HAS TURNED Monthly Net Sales of Long Term Funds (in $MM) ly ay ay ov p p ar ar n n l Se Se Ju Ju Ja Ja M M M M N 100.0 50.0 0.0 -50.0 -100.0 +$308M -150.0 -200.0 -250.0 -300.0 10 Not including $884M redemption in January 2005 and $274M sale in August 2005.
Slide 11: AGF Trust Company
AGF MANAGEMENT LIMITED MARIO CAUSARANO PRESIDENT & CHIEF OPERATING OFFICER AGF TRUST COMPANY
Slide 12: AGF Trust Company: Profile
AGF TRUST COMPANY: PROFILE TRUST COMPANY OPERATIONS RSP & INVESTMENT MORTGAGE LOANS LOANS 12
Slide 13: RSP & Investment Loans Growth
TRUST COMPANY OPERATIONS: RSP & INVESTMENT LOANS GROWTH Consumer Loan Assets as at August 31 1,200 $1,109 $ Millions 1,000 800 $738 600 $405 400 61% $266 CAGR 200 0 2003 2004 2005 2006 13
Slide 14: RSP & Investment Loans: Credit Characteristics
RSP & INVESTMENT LOANS: CREDIT CHARACTERISTICS RLP ILP Average Beacon 710 730 Historical Loss Rate 0.75% 0% Current Estimated Spread 3.55% 2.85% 14
Slide 15: RSP & Investment Loans: Future Growth Opportunities
RSP & INVESTMENT LOANS: FUTURE GROWTH OPPORTUNITIES Total Estimated Advisors Penetration • MFDA licensed advisors: 69,000 AGF penetration • Insurance advisors: in both 25,000 Remaining channels MFDA and 9% • AGF deals with Insurance 8,500 advisors advisors 91% 15
Slide 16: Mortgage Loans Growth
TRUST COMPANY OPERATIONS: MORTGAGE LOANS GROWTH Mortgage Loan Assets as at August 31 900 $868 $ Millions 800 700 600 $478 500 400 300 $264 60.5% $210 200 CAGR 100 0 2003 2004 2005 2006 16 As at August 31, 2006
Slide 17: Mortgage Loans: Credit Characteristics
MORTGAGE LOANS: CREDIT CHARACTERISTICS Residential - Conventional 50.1% Residential - Insured 46.6% Average Loan-to-Value, Conventional 69.0% Average Beacon Score, Conventional 625 Current Estimated Spread, Conventional 2.80% Current Estimated Spread, Insured 1.80% 17
Slide 18: Mortgage Loans: Future Growth Opportunities
MORTGAGE LOANS: FUTURE GROWTH OPPORTUNITIES Total Estimated Mortgage Market • Sub prime market estimated at $65 billion (LTV <75%) $65 billion • AGF Trust’s current $535 Mortgage book = $0.8 billion billion = <2% market share 18
Slide 19: AGF Trust Company: Future Growth Opportunities
AGF TRUST COMPANY: FUTURE GROWTH OPPORTUNITIES • No funding issues – moving to self financing • Fund focused product development • Franchising Mortgage clients • Cross over of Advisor and Mortgage Broker channels • Diversification 19
Slide 20: AGF Trust Company: A Hidden Gem
AGF TRUST COMPANY: A HIDDEN GEM Total Originations Total Assets as at July 31, 2006 for the six months ended June 30, 2006 1,000 4.0 $ Billions $ Millions $931 3.5 $3.6 800 $868 3.0 600 2.5 2.0 $2.2 400 1.5 1.0 200 0.5 0 0.0 Home Capital AGF Trust Home Capital AGF Trust
Slide 21: AGF Management Limited: Revenue & EBITDA
AGF MANAGEMENT LIMITED: REVENUE & EBITDA – continuing operations $ Millions 200 180 169.2 174.2 172.6 160 153.0 148.6 140 120 100 80 60 65.2 68.7 65.6 40 56.1 50.9 20 0 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Revenue EBITDA 21
Slide 22: Results of Strategic Revitalization
RESULTS OF STRATEGIC REVITILIZATION Best Investment Performance among Top 10 Firms Increased Gross Sales YOY by 41% Institutional Assets up almost 50% Strong Balance Sheet Excellent Growth Opportunities Profitable & Synergistic contribution from AGF Trust 22
Slide 23: Forward-Looking Information
FORWARD-LOOKING INFORMATION 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 securities laws. Actual results could differ materially from a conclusion, forecast or proje