Affiliated Managers Group, Inc. · NYSE:AMG
Affiliated Managers — Investor Presentation (June 2006)
15 slides from Affiliated Managers's investor presentation, June 2006
Slide 1: Affiliated Managers Group
AMG AFFILIATED MANAGERS GROUP
Slide 2: AMG Overview (AMG: NYSE)
AMG AMG Overview (AMG: NYSE) Majority Owner of High Quality Mid-Sized Asset Management Firms $203 Billion in Assets Under Management Broad Exposure to Alternative Investment Products and International Equities, as well as Domestic Growth and Value Equity Products Partnership Approach Incents
Slide 3: Growth and Stability in Changing Equity Market Environments
Growth and Stability in Changing AMG Equity Market Environments (a) AMG Cash EPS vs. Equity Indices Strong Organic Growth 450% Total Annual Broad Participation in Equity 400% Growth CAGR AMG’s Cash EPS 354% 22% Markets S&P 33% 4% 350% Positive EBITDA Contribution Nasdaq 49% 5% 300% MSCI EAFE 5
Slide 4: AMG Affiliates
AMG AMG Affiliates Distinguishing Characteristics of Affiliates High Quality Boutique Investment Management Firms Proven, Disciplined Investment Processes Entrepreneurial, Multi-Generational Management Teams Third Avenue Friess Associates Management 3
Slide 5: Selected Affiliate Profiles
AMG Selected Affiliate Profiles Eight Affiliates Represent Approximately 80% of AMG’s EBITDA Friess Associates Third Avenue Management November 2004 October 1997 October 2001 August 2002 • “Graham & Dodd” Value Equity • Growth Equity • Disciplined Value Approach to Investing in • Quantitative Invest
Slide 6: Diverse Product Offerings
AMG Diverse Product Offerings EBITDA By Product Category Alternative AQR First Quadrant Equity – International Fixed Income, Tweedy, Browne Asset Allocation, Balanced Third Avenue 15% Genesis Managers Investment Group AQR 5% 35% 30% Equity – US Growth 15% Friess TimesSquare Equity
Slide 7: Broad Distribution Capabilities
AMG Broad Distribution Capabilities EBITDA By Distribution Channel AMG Enhances Affiliates’ Already Strong Distribution Capabilities Institutional Channel Mutual Fund More Than 150 Institutional Products 40% Across a Broad Range of Investment Styles and Asset Classes Institutional Strong Lon
Slide 8: Affiliate Development Strategy
AMG Affiliate Development Strategy Enhance Revenue Growth Additional Distribution and Product Development Opportunities Strategic Initiatives Which Leverage Our Affiliates’ Existing Infrastructure Provide Scale Economies Compliance Resources and Best Practices Technology Joint Purchasi
Slide 9: Growth From Investments in New Affiliates
Growth From Investments in AMG New Affiliates Strong Recognition and Relationships Within the Industry Target Universe of More Than 1,800 Mid-Sized Firms Approximately 180 Core Prospects Proven Investment Strategy Has Broad Appeal AMG Investment Structure Appeals to Firms Which Anticipate
Slide 10: Earnings Growth Drivers
AMG Earnings Growth Drivers Internal Growth of Existing Affiliates Excellent Investment Performance and Net Client Cash Flows Across Diverse Equity Products Affiliate Development Distribution Initiatives Create Additional Growth Opportunities Accretive New Investments New Investments Immed
Slide 11: Financial Strength
AMG Financial Strength Financial Flexibility Growing Stream of Free Cash Flow of Over $200 Million Annually Diverse Capital Structure Includes Long-Term Liabilities With Staggered Maturities Substantial Additional Capacity Available Under Credit Facility Investment Grade Rating (BBB- by S&
Slide 12: Long-Term Growth in Earnings
AMG Long-Term Growth in Earnings (a) (c) Cash EPS (a) CAGR: 22% EPS CAGR: 31% EBITDA CAGR: 25% $6.00 $3.50 $350.0 $4.85 $5.00 $2.81 $3.01 $287.4 $5.00 $3.00 $300.0 $267.5 $3.95 $2.12 $2.50 $2.02 $250.0 $4.00 $3.21 $186.4 (per share) (per share) $2.89 $2.94 (millions) $2.57 $2.47 $2.00 $1.66 $200.0 $
Slide 13: Building Shareholder Value Over the Long-Term
Building Shareholder Value AMG Over the Long-Term Excellent Performance Record 22% CAGR of Cash EPS Since IPO in November 1997 Diverse Products and Distribution Channels Among Affiliates Provide Balanced Earnings Stream to AMG Proven Investment Strategy Affiliates’ Equity Participation in
Slide 14: Forward-Looking Statements
AMG Forward-Looking Statements Certain matters discussed in this presentation, as well as oral statements made by AMG, which are prefaced with words or phrases such as “will likely result,” “are expected to be,” “will continue,” “is anticipated,” “believed,” “estimate,” “projects” or similar words o
Slide 15: Notes
AMG Notes (a) Prior to Q1 2002, Cash EPS represents Net Income plus depreciation and amortization on a per share basis. With the adoption of FAS 142 at the beginning of 2002, Cash EPS represents Net Income plus depreciation and amortization and deferred taxes generally related to intangible assets o
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