Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — Q2 2012 Earnings Presentation
16 slides from Agf Management Limited Class B's earnings presentation, Jun 27, 2012
Slide 1: AGF Management Limited Q2 2012 Earnings Conference Call
Independent. Strong. Focused. AGF Management M Limited Li i d Q2 2012 Earnings Conference Call June 27, 2012
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD‐LOOKING STATEMENTS The forward looking information is provided as of June 27, 2012. 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
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS • Blake C. Goldring, M.S.M., CFA, Chairman & Chief Executive Officer • Robert J. Bogart, g CPA, Executive Vice‐President & Chief Financial Officer • Mario Causarano, CA, President & Chief Operating Officer, AGF Trust Company AGF Management Limited 3
Slide 4: AGF Management Limited
AGF MANAGEMENT LIMITED • On June 6, 2012, AGF announced the sale of AGF Trust to B2B Trust, a subsidiary of Laurentian Bank Bank, for approximately $419 $419.8 8 million in cash cash. • Overall AGF retail fund performance improved during the quarter. • AGF Emerging Market funds continue to outperfor
Slide 5: Retail Business Segment
RETAIL BUSINESS SEGMENT • Challenging environment, especially for global equity focused managers. • Industry fund flows are down 31% at $25.7 billion versus $34.4 billion for the 12 months through May 31, 2011. • AGF retail ggross sales were down 28% in Q2 2012 relative to Q2 2011. • Approximately 6
Slide 6: Retail Fund Performance
RETAIL FUND PERFORMANCE 1 year performance 3 year performance 5 year performance 45% 40% 40% 40% 37% % of Assets above Median) ormance 35% Perfo 29% 30% Morningstar 25% M (% 23% 20% 17% 15% 10% May‐11 Aug‐11 Nov‐11 Feb‐12 May‐12 AGF Management Limited 6
Slide 7: Institutional Business Segment
INSTITUTIONAL BUSINESS SEGMENT Q1 2012 Net Sales Q2 2012 Net Sales Committed Pipeline $400 294 $200 ($ millionss) $ $0 ‐$200 ‐144 ‐$400 ‐$600 ‐$800 ‐736 AGF Management Limited 7
Slide 8: AGF Management Limited: Consolidated Results
AGF MANAGEMENT LIMITED: CONSOLIDATED RESULTS ($ millions) Q2 2012 Q2 2011 Change Revenue $154.9 $180.8 (14.3)% SG&A Expense $56.2 $53.7 4.7% EBITDA $60.4 $76.2 (20.7)% EBITDA Margin 39.0% 42.1% (7.4)% Free Cash Flow(1) $39.2 $52.4 (25.2)% Net Income $23.8 $33.9 (29.8)% EPS Diluted $0.25 $0.35 (28.6)
Slide 9: Investment Management & Continuing Operations: Adjusted EBITDA & BPS
INVESTMENT MANAGEMENT & CONTINUING OPERATIONS: ADJUSTED EBITDA & BPS Q2‐12 TTM(1) Q2‐11 Average AUM ($ billions) $46.1 $47.2 $52.2 Average Retail $22.1 $23.2 $26.6 Average Institutional and H‐N‐W $24.0 $24.0 $25.6 Revenue (bps) 113 116 120 Less: Trailer Fees (bps) 29 30 32 SG&A (bps)(2)(3) 42 40 35
Slide 10: Investment Management & Continuing Operations: Revenue, EBITDA & SG&A
INVESTMENT MANAGEMENT & CONTINUING OPERATIONS: REVENUE, EBITDA & SG&A Revenue EBITDA SG&A 180 158 1 158.1 160 151.4 138.1 140 132.0 133.5 120 ns) ($ million 100 80 66.2 61.6 56.2 52.5 60 50.3 40 43.9 46.0 44.1 43.1 47.0 20 0 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 EBITDA Margin 41.9% 40.7% 40.7% 39.8% 37.7% A
Slide 11: AGF Trust: Gross Loan Originations & Losses
AGF TRUST: GROSS LOAN ORIGINATIONS & LOSSES Loan Originations Loan Loss Provisions RSP & Investment Loans Mortgages & HELOC 3.5 200 177.2 177.3 3 2.9 2.9 180 160 2.5 2.5 140 133.7 ($ millions) ($ millions) 112.3 2 120 1.8 142.7 146.4 100 87.0 15 1.5 80 126.7 1.0 60 56.0 1 109.5 40 0.5 20 34.5 31.0 3
Slide 12: AGF Trust: Revenue & Operating Expenses
AGF TRUST: REVENUE & OPERATING EXPENSES Revenue EBITDA Operating Expenses 25 22.0 21.1 21 4 21.4 19.8 19.8 20 15 ($ millions) 12.6 11.9 11.8 11.5 10.3 10 10.5 9.5 9.5 8.5 8.0 5 0 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 EBITDA Margin 40.3% 44.4% 40.4% 47.7% 48.0% AGF Management Limited 12
Slide 13: AGF Management Limited: Free Cash Flow Generation
AGF MANAGEMENT LIMITED: FREE CASH FLOW GENERATION Free Cash Flow (1) Dividend/Buyback as % of Free Cash Flow 60 90% (2) 76% 80% 74% (4) 50 52.4 70% (3) 65% 70% 61% 45.2 40 41.7 60% 41.3 39.2 ($ millions) 46% 50% 30 33.2 40% 20 30% 20% 10 10% 0 0% Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q2 12 Continuing Operat
Slide 14: Use of Capital
USE OF CAPITAL • AGF Trust sale will provide approximately $420m in total cash proceeds • Transaction will not close until August 1st and is still subject to regulatory approvals • Capital Uses • Reconfirm commitment to utilize the NCIB • Focus on core investment management operations • S k to Seek
Slide 15: AGF Management Limited: Dividend & Yield
AGF MANAGEMENT LIMITED: DIVIDEND & YIELD Dividends Paid per Share Current Yield: 1.20 8.9%(1) $1.07 $1.08 $1.04 $1.00 1.00 $0.95 $0 78 $0.78 0.80 $0.69 ($// per share) 0.60 $0.56 $0.41 0.40 $0.30 $0.26 $0.22 $0.18 0.20 $0 13 $0.13 $0.15 $0.09 0.00 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20
Slide 16: Questions
Independent. Strong. Focused. QUESTIONS