Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — Q1 2009 Earnings Presentation
20 slides from Agf Management Limited Class B's earnings presentation, Mar 25, 2009
Slide 1: Q1 2009 Financial & Operating Results
AGF MANAGEMENT LIMITED Q1 2009 Financial & Operating Results March 25, 2009
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of March 25, 2009. 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 securitie
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS Speaking: • Blake Goldring, M.S.M., CFA, Chairman & Chief Executive Officer • Greg Henderson, CA, Senior Vice-President & Chief Financial Officer In Attendance: • Randy Ambrosie, President, AGF Funds Inc. • Rob Badun, MBA, Executive Vice-President, Investments & Presiden
Slide 4: Q1 2009 Financial Overview
AGF MANAGEMENT LIMITED: Q1 2009 FINANCIAL OVERVIEW • Global market volatility and a reduction in gross mutual fund sales resulted in a 33.9% decline in AUM year-over-year to $32.6 billion – AUM declined 8.3% from November 30, 2008 • Revenue declined 29.0% year-over-year driven by a 33.5% decline in
Slide 5: Performance: Strong Long-Term Value to Shareholders
PERFORMANCE: STRONG LONG-TERM VALUE TO SHAREHOLDERS TOTAL RETURN ANNUALIZED SINCE INCEPTION (AUG. 1968) AGF.B 11.58% TSX Composite 8.81% TOTAL RETURN ANNUALIZED OVER 10 YEARS AGF.B (0.79)% TSX Composite 4.61% TOTAL RETURN OVER 1 YEAR AGF.B (63.58)% TSX Composite (38.20)% 5 As at February 28, 2009
Slide 6: Selling, General and Administrative Expenses
AGF MANAGEMENT LIMITED: SELLING, GENERAL AND ADMINISTRATIVE EXPENSES SG&A Expenses – AGF Management Limited February 28, February 29, Increase/ ($ millions) 2009 2008 (Decrease) Investment Management Operations 44.5 44.6 (0.1) Trust Company Operations 8.6 11.3 (2.7) Consolidated 53.1 55.9 (2.8) SG&A
Slide 7: Capital Stewardship: Dividends
CAPITAL STEWARDSHIP: DIVIDENDS 1.00 1.00 0.90 R 2 3 % 0.80 CA G 0.70 $/share 0.60 0.50 0.40 0.30 0.20 0.13 0.10 0.00 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 • Quarterly dividends per share paid/declared in fiscal 2009: – $0.25 per share paid on January 20, 2009 – $0.25 per share decla
Slide 8: Q1 2009 Financial Overview: Results Compared to Q1 2008
AGF MANAGEMENT LIMITED: Q1 2009 FINANCIAL OVERVIEW FINANCIAL RESULTS COMPARED TO Q1 2008 AUM decreased 33.9% Revenue decreased 29.0% EBITDA decreased 52.2% 8
Slide 9: Investment Management Operations: Assets Under Management
INVESTMENT MANAGEMENT OPERATIONS: ASSETS UNDER MANAGEMENT (AUM) 60.0 50.0 $49.3 17.9 19.2 40.0 18.6 $ billions $32.6 30.0 3.7 3.9 3.8 12.8 11.8 20.0 3.0 2.7 27.7 28.6 26.4 10.0 19.8 18.1 0.0 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Mutual Funds High-Net-Worth Institutional 9
Slide 10: Trust Company Operations: Loan Assets
TRUST COMPANY OPERATIONS: LOAN ASSETS 4.5 $4.3 $4.1 4.0 3.5 3.0 2.2 2.3 $ billions 2.5 2.0 1.5 1.0 1.9 2.0 0.5 0.0 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Real Estate Loans Investment Loans 10
Slide 11: Revenue, EBITDA and SG&A
AGF MANAGEMENT LIMITED: REVENUE, EBITDA AND SG&A 200 194.3 194.3 184.7 150 152.2 138.0 $ millions 100 89.5 88.6 81.5 54.0 53.0 50 56.0 56.8 55.3 41.2 42.8 0 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Revenue EBITDA SG&A EBITDA Margin 46.1% 45.6% 44.1% 35.5% 31.0% 11
Slide 12: Investment Management Operations: Revenue, EBITDA and SG&A
INVESTMENT MANAGEMENT OPERATIONS: REVENUE, EBITDA AND SG&A 200 150 165.2 162.9 155.2 $ millions 100 123.1 74.8 71.5 109.9 66.0 55.3 44.5 50 44.6 46.0 44.8 31.3 34.8 0 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Revenue EBITDA SG&A EBITDA Margin 45.3% 43.9% 42.5% 44.9% 31.7% 12
Slide 13: Trust Company Operations: Revenue, EBITDA and SG&A
TRUST COMPANY OPERATIONS: REVENUE, EBITDA AND SG&A 35 30 25 27.3 28.4 27.1 26.7 26.6 20 $ millions 14.4 15 12.9 12.4 8.6 10 11.3 10.9 10.6 9.9 5 7.0 0 (3.8) Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 -5 -10 Revenue* EBITDA SG&A EBITDA Margin 47.3% 46.4% 50.7% NM 25.8% 13 * Net interest income, other re
Slide 14: Trust Company Operations: Aging of Loans
TRUST COMPANY OPERATIONS: AGING OF LOANS As at February 28, 2009 ($ thousands) Current 1 to 29 days 30 to 60 days 61 to 90 days Over 90 days Total Insured mortgage loans $ 527,304 $ 38,287 $ 6,957 $ 5,162 $ 26,526 $ 604,236 Conventional mortgage loans 614,112 60,248 18,587 5,715 40,625 739,287 Secur
Slide 15: Trust Company Operations: Allowance for Credit Losses
TRUST COMPANY OPERATIONS: ALLOWANCE FOR CREDIT LOSSES Three months ended February 28, 2009 Specific General Total ($ thousands) allowances allowances allowances Balance, beginning of the period $ 14,163 $ 22,967 $ 37,130 Amounts written off (4,660) – (4,660) Recoveries 404 – 404 Provision for loan l
Slide 16: Trust Company Operations: Conventional Mortgages in Legal Action
TRUST COMPANY OPERATIONS: CONVENTIONAL MORTGAGES IN LEGAL ACTION Three months ended February 28, February 29, ($ thousands) 2009 2008 Balance outstanding, beginning of the period $ 44,987 $ 35,070 Additions 16,782 4,989 Discharged mortgages other than sold (6,314) (8,990) Proceeds on foreclosed mort
Slide 17: Utilization of Free Cash Flow
AGF MANAGEMENT LIMITED: UTILIZATION OF FREE CASH FLOW 35 30 25 $ millions 20 15 10 5 0 Dividends Acquisition of Purchase of PPE Investments* Investment in Trust Subsidiaries Q1 2008 Q1 2009 * Excludes $115.0 million of cash invested by AGF Trust into investments available for sale during Q1 2008. 17
Slide 18: Continuity of Bank Debt
AGF MANAGEMENT LIMITED: CONTINUITY OF BANK DEBT Q1 Q1 Fiscal ($ thousands) 2009 2008 2008 Opening Bank Debt $ (123,740) $ (160,000) $ (160,000) Cash generated by operations (19,295) 844 275,579 Dividends (21,553) (17,270) (80,242) Net impact of Class B Non-Voting Shares repurchased/issued – 1,410 (5
Slide 19: AGF Management Limited priorities
AGF MANAGEMENT LIMITED • Emphasis on Cost Reduction Activities • Emphasis on Profitability Enhancement Initiatives • Maintain Strong Financial Position 19
Slide 20: Questions
Positioned forthe future Mi QUESTIONS