Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q3 2018 Earnings Presentation
22 slides from Fiera Capital Corporation Class A's earnings presentation, Nov 9, 2018
Slide 1: 2018 Q3 Results
NOVEMBER 9, 2018 2018 Q3 Results VINCENT DUHAMEL JOHN VALENTINI LUCAS PONTILLO Global President and President and Chief Executive Officer, Executive Vice President and Global Chief Operating Officer Fiera Private Alternative Investments Chief Financial Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements The accompanying Investor Presentation contains forward-looking information, including financial outlook, within the meaning of Canadian securities laws and regulations. Forward-looking information may include comments with respect to Fiera Capital Corporation's ("Fiera")
Slide 3: Business Overview
Business Overview $4.1B in new client AUM in the quarter. CGOV integration in progress. Sale of retail mutual funds to Canoe Financial. Won and funded large institutional mandates across the U.S. Bel Air AUM of $11B, up $2B year over year. Closing of Clearwater Capital Partners acquisition. Alternat
Slide 4: 2022 Strategic Plan
2022 Strategic Plan Began execution of new strategic plan to drive profitable growth. VISION Recognized for our talented people and for providing the best solutions to our clients globally, Fiera Capital aims to be one of the top 100 asset managers in the world PEOPLE PROCESS PERFORMANCE PARTNERS ▪
Slide 5: Key Hires
Key Hires Kanesh Lakhani Lucas Pontillo President and CEO of Fiera Capital's Executive Vice President and Global European Division CFO 5
Slide 6: Quarterly Financial Highlights: Quarter-over-Quarter
Quarterly Financial Highlights: Quarter-over-Quarter AUM of $ 143.5 billion, up 3%. Base management fees of $126.9 million, up 8%. Adjusted EBITDA1 of $36.6 million, an increase of 12%. Adjusted EPS1 of $0.29 compared to $0.26. Net earnings per share of $0.01, compared to ($0.02). 1 Adjusted EBITDA
Slide 7: Financial Highlights: Quarter-over-Quarter
Financial Highlights: Quarter-over-Quarter Q3-2018 Q2-2018 Variation $ $ $ Total AUM 143.5B 139.4B 4.1B Total Revenues 137.1M 126.2M 10.9M Base Management Fees 126.9M 117.9M 9.0M Total Performance Fees 1.2M 2.7M (1.5M) Other Revenues 9.0M 5.6M 3.4M Adjusted EBITDA1 36.6M 32.7M 3.9M Net Earnings 1.0M
Slide 8: Financial Highlights: Year-over-Year
Financial Highlights: Year-over-Year Q3-2018 Q3-2017 Variation $ $ $ Total AUM 143.5B 123.0B 20.5B Total Revenues 137.1M 107.1M 30.0M Base Management Fees 126.9M 101.0M 25.9M Total Performance Fees 1.2M 1.6M (0.4M) Other Revenues 9.0M 4.5M 4.5M Adjusted EBITDA1 36.6M 27.0M 9.6M Net Earnings 1.0M 4.6
Slide 9: Revenue Trend – Quarterly & Last Twelve Months
Revenue Trend – Quarterly & Last Twelve Months $M $M 180 495.4 525.4 600 459.1 478.5 412.8 438.1 500 160 378.5 344.1 400 142.0 140 137.1 300 121.0 126.2 200 120.0 120 100 109.3 107.1 100.6 0 100 -100 80 -200 60 -300 -400 40 -500 -600 20 -700 0 -800 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-
Slide 10: Adjusted EBITDA ($) & Margin (%) Trend
Adjusted EBITDA ($) & Margin (%) Trend $M 50 45% 40 41.6 34.4% 31.7% 35% 26.0% 26.7% 36.6 25.2% 25.4% 36.1 25.1% 25.9% 30 32.7 25% 24.0% 25.2% 28.8 28.5 25.9 27.0 27.0 25.2 15% 20 5% 10 -5% 0 -15% Q3-2016 Q3-2017 Q4-2016 Q4-2017 Q1-2017 Q1-2018 Q2-2017 Q2-2018 Q3-2017 Q3-2018 Adjusted EBITDA 1 (Prio
Slide 11: Average BPS Evolution vs AUM
Average BPS Evolution vs AUM $B BPS 150 143.5 40 139.4 128.9 131.4 122.1 125.9 123.0 125 116.9 34.8 100 34.2 35 33.5 32.6 75 31.5 30.4 50 30 28.6 27.2 25 0 25 Q4-2016 Q1-2017 Q2-2017 1 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 AUM - End of Period ($ Billion) Average BPS - LTM 11
Slide 12: LTM EBITDA, LTM Adjusted EBITDA and Margin Trend
LTM EBITDA ($), LTM Adjusted EBITDA ($) and and Margin (%) Trend $M 140 134.2 80% 121.2 122.3 124.6 120.4 120 116.2 116.8 70% 107.2 60% 100 84.8 81.2 81.3 50% 78.1 80 71.3 69.1 70.9 66.5 40% 60 31.1% 30.7% 29.4% 27.9% 25.4% 25.2% 25.2% 25.5% 30% 40 20% 20 10% 0 0% Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-
Slide 13: Rolling LTM Dividends, Adjusted Net Earnings Per Share and Net Earnings Per Share
Rolling LTM Dividends, Adjusted Net Earnings Per Share and Net Earnings Per Share $ 14.8% CAGR Adjusted EPS 1.4 Since Q4-2010 1.2 1.23 1.25 1.19 1.21 1.18 1.17 1.14 1.13 1.0 0.76 0.78 0.8 0.72 0.74 0.68 0.70 0.64 0.66 0.6 0.4 0.29 0.24 0.19 0.2 0.14 0.13 0.06 0.03 -0.02 0.0 Q4-2016 Q1-2017 Q2-2017 Q
Slide 14: AUM and Revenues Breakdown – by Geography
AUM and Revenues Breakdown – by Geography AUM as of September 30, 2018 Revenues Q3 2018 Canada 59% Canada 50% U.S. 32% U.S. 38% Europe and other 9% Europe and other 12% 14
Slide 15: Investment Performance (September 30, 2018)
Investment Performance (September 30, 2018) Traditional Strategies – Fixed Income and Balanced Annualized Rates of Return 5 YEARS OR INCEPTION BENCHMARK 1 YEAR SINCE INCEPTION1 YEAR NAME Return (%) Added Value (%) Return (%) Added Value (%) FIXED INCOME Integrated Fixed Income Universe 2.21 0.54 3.8
Slide 16: Investment Performance (September 30, 2018)
Investment Performance (September 30, 2018) Traditional Strategies – Equity Annualized Rates of Return 5 YEARS OR INCEPTION BENCHMARK 1 YEAR SINCE INCEPTION YEAR NAME Return (%) Added Value (%) Return (%) Added Value (%) Canadian Equity 7.92 2.05 10.88 3.07 2013 S&P/TSX Composite Canadian Equity Cor
Slide 17: Investment Performance (September 30, 2018)
Investment Performance (September 30, 2018) Alternative Strategies Annualized Rates of Return 5 YEARS OR INCEPTION BENCHMARK 1 YEAR SINCE INCEPTION1 YEAR NAME Return (%) Return (%) North American Market Neutral Fund 4.46 4.62 2007 Absolute Return Long / Short Equity Fund 4.36 10.54 2010 Absolute Ret
Slide 18: Outlook
Outlook 2022 Strategic Plan goal: Establish Fiera Capital as a top-tier, multi-strategy asset manager and one of the top 100 asset managers in the world. Expand geographically and attract global clients. Capitalize on opportunities in the U.S. market. Grow the private alternatives business. Focus on
Slide 19: Question Period
Question Period 19
Slide 20: Mariem Elsayed, Director, Investor Relations and Public Affairs
Mariem Elsayed Director, Investor Relations and Public Affairs melsayed@fieracapital.com T 514 954-6619 20
Slide 21: Thank You
Thank You 21
Slide 22: fieracapital.com
fieracapital.com