AGF Management Limited Class B · TSX:AGF.B
AGF Management Limited Class B — Q4 2019 Earnings Presentation
15 slides from AGF Management Limited Class B's earnings presentation, Jan 22, 2020
Slide 1: AGF Management Limited Earnings Conference Call Fourth Quarter 2019
AGF Management Limited Earnings Conference Call Fourth Quarter 2019 January 22nd, 2020
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements The forward looking information is provided as of January 22nd, 2020. 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 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 Update • Highlights of the 4th Quarter and Fiscal 2019 • Business Updates • Financial Results • Capital & Liquidity • Focus & Priorities 4
Slide 5: Fiscal 2019 Highlights
Fiscal 2019 Highlights Continued progress toward stated objectives Lipper Award Winner liquid alt products AGF U.S. Small-Mid launched Cap Fund1 Adjusted diluted Private alternatives 3.4% reduction in AUM reaches SG&A compared EPS of $0.71 20% higher than $2.6 billion to prior year2 prior year3 (1)
Slide 6: Line of Business Performance
Line of Business Performance ($ millions) Q4 2018 Q4 2019 Change Mutual funds 18,713 19,346 3% Institutional, Sub-advisory & ETF 12,475 10,755 (14%) Private Client 5,513 6,100 11% Private Alternatives 1,011 2,580 155% Total 37,712 38,781 3% 6
Slide 7: Mutual Fund Business Review
Mutual Fund Business Review IFIC Industry Net Sales ($B)1 AGF Retail Mutual Fund Net Sales ($M)2 45.0 (103) (131) (181) 7.5 3.4 TTM Ending TTM Ending TTM Ending Q4 2018 Q3 2019 Q4 2019 Nov 30, 2017 Nov 30, 2018 Nov 30, 2019 (1) Industry long-term funds net sales per IFIC. (2) Retail mutual fund net
Slide 8: Financial Results - Continuing Operations
Financial Results Adjusted for one-time items noted in the MD&A and restated for IFRS 151 Sequential Quarter Year Over Year Fav / Fav / ($ millions, except per share amounts) Q4-19 2 Q3-19 2019 2,3 2018 4 (Unfav) (Unfav) Revenue 110.4 107.4 2.8% 432.6 436.5 (0.9%) SG&A 45.4 47.3 4.0% 189.2 195.9 3.4
Slide 9: Financial Results - BPS Detail
Financial Results – BPS Detail1,2 (bps of average AUM) Q4-19 TTM Average AUM excl. Private Alternatives ($B)3 35.4 36.0 Average Mutual Fund 19.0 18.9 Average Institutional, Sub-Advisory, ETFs & 16.4 17.1 Private Client Revenue (bps)4 111 108 Less: Trailer Fees (bps) 34 34 SG&A (bps)5 52 53 EBITDA be
Slide 10: Capital & Liquidity
Capital & Liquidity1 60 4 4 50 54 53 51 51 3 45 40 3 ($ millions) 2 30 2 20 1 55% 49% 46% 49% 47% 1 10 0 - (1) TTM Q4-FY18 TTM Q1-FY19 TTM Q2-FY19 TTM Q3-FY19 TTM Q4-FY19 TTM Adjusted FCF TTM Dividend to FCF % (1) Q2-2018 adjusted for one-time restructuring costs of $3.8m (net of tax). Q1-2019 does
Slide 11: 2019 Pro Forma: Restated for IFRS 16 and excluding Smith & Williamson
2019 Pro Forma: Restated for IFRS 16 and excluding Smith & Williamson1 Restated for FY2019 From continuing operations Adjusted for IFRS 16 Restated for IFRS 16 and ($M, except per share data) one-time items adjustments IFRS 16 S&W excluding S&W I ncome Management, adv isory and administration fees 3
Slide 12: 2020 Focus & Priorities
2020 Focus & Priorities Deliver Position AGF Meet expense Drive the to reach guidance of consistent and repeatable organization to $5 billion $180 million sustainable in private while continuing investment net inflows alternative to invest in key performance assets growth areas 12
Slide 13: Appendix 1: Historical P&L excluding One-time Items and Restated for IFRS 15
Appendix 1: Historical P&L excluding One-time Items and Restated for IFRS 151 From continuing operations adjusted for one-time items and restated for IFRS 15 ($M, except per share data) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Total Average AUM excluding Private Alternatives 2 36,099 36,405 3
Slide 14: Thank You!
Thank You! To learn more about AGF’s history visit: www.agf.com/ca/en/about- agf/our-story
Slide 15: Disclaimer
Disclaimer The AGF U.S. Small-Mid Cap Fund (MF Series) was awarded the 2019 Lipper Fund Award in the US Small/Mid Cap Equity category for the 3- and 5-year period out of a classification total of 23 and 21 funds, respectively, for the period ending July 31, 2019. The corresponding Lipper Leader Cons