Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — Q3 2015 Earnings Presentation
13 slides from Agf Management Limited Class B's earnings presentation, Sep 30, 2015
Slide 1: AGF Management Limited Earnings Conference Call Third Quarter 2015
AGF MANAGEMENT LIMITED EARNINGS CONFERENCE CALL THIRD QUARTER 2015 SEPTEMBER 30, 2015
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of September 30, 2015. 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 secur
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 3rd Quarter • Business Updates – Retail Business – Investment Management – Institutional Business – Alternatives • Financial Results • Capital & Liquidity • Focus & Priorities 4
Slide 5: Q3 2015 Highlights
Q3 2015 HIGHLIGHTS Continued progress toward stated objectives • Highlights: • Sustained improvement in investment performance • 11th consecutive quarter of improved retail fund flows • Institutional net sales and positive committed pipeline • Significant gain realized on infrastructure LP investmen
Slide 6: Retail Net Redemptions Trend
RETAIL NET REDEMPTIONS TREND Further improvement in investment performance is key to delivering net sales Q3 Percentage Improvement in Net Redemptions • Net redemptions improved 3% over Q3 2014 • 11 consecutive quarters of 18% 16% improvement 3% Q1 2015 Q2 2015 Q3 2015 Note: Excludes seed capital an
Slide 7: Investment Teams & Performance
INVESTMENT TEAMS & PERFORMANCE Continued refinement of process and risk management will sustain improvement in investment performance • AUM above median: 1 year 45%, 3 years 48% • Global performance particularly strong • Institutional capabilities aligned with global marketplace • Essential Infrastr
Slide 8: Institutional Business Review & Pipeline
INSTITUTIONAL BUSINESS REVIEW & PIPELINE ($ millions) Gross Sales Commitments 15 Pipeline Q2 Redemption Notifications (3) • Q2 Pipeline fully funded Q2 Net Pipeline 12 • Positive Q3 pipeline Gross Sales from Q2 Pipeline 15 Activity Redemptions from Q2 Pipeline (3) • High expectations for sales of Gl
Slide 9: Summary of Financial Results
SUMMARY OF FINANCIAL RESULTS Sequential Quarter Quarter Over Quarter ($ millions, except per share amounts) Q3'151 Q2'15 Change Q3'15 Q3'14 Change Revenue 115.8 117.1 (1.1%) 115.8 116.9 (0.9%) SG&A 50.1 46.6 7.5% 50.1 43.8 14.4% EBITDA 31.8 36.0 (11.7%) 31.8 38.5 (17.4%) EBITDA Margin 27.5% 30.7% (1
Slide 10: Financial Results – BPS Detail
FINANCIAL RESULTS – BPS DETAIL Q3 EBITDA bps are consistent with TTM (bps of average AUM) Q3-15 TTM Average AUM ($B)1 34.7 35.2 Average Retail 18.9 19.2 Average Institutional and HNW 15.8 16.0 Revenue (bps)2 123 122 Less: Trailer Fees (bps) 37 37 3 SG&A (bps) 54 53 EBITDA (bps) 32 32 (1) Average AUM
Slide 11: Free Cash Flow
FREE CASH FLOW Dividend payout ratio is within an acceptable range Free Cash Flow Adjusted Dividend % of Free Cash Flow (Payout Ratio) 40 160% 140% 30 120% 102% 101% ($ millions) 100% 20 80% 44% 60% 22.8 39% 38% 10 22.2 40% 15.4 16.8 17.0 20% - 1 0% Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 11 (1) Q1
Slide 12: 2015 Focus & Priorities
2015 FOCUS & PRIORITIES Build on improved investment performance improvement • Key Execution Points − Continue investment performance improvement − Continue retail improvement − First close of Essential Infrastructure Fund 12
Slide 13: Questions
QUESTIONS