14 slides from Agf Management Limited Class B's earnings presentation, Jan 23, 2019
Slide 1: AGF Management Limited Earnings Conference Call Fourth Quarter 2018
AGF Management Limited Earnings Conference Call Fourth Quarter 2018 January 23rd, 2019
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements The forward looking information is provided as of January 23rd, 2019. 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, ICD.D (2007) President & Chief Administration Officer 3
Slide 4: Today's Discussion
Today’s Discussion • Highlights of the 4th Quarter and Fiscal 2018 • Business Updates – Retail – Investment Management – Institutional – Alternatives • Financial Results • Capital & Liquidity • Focus & Priorities 4
Slide 5: Fiscal 2018 Highlights
Fiscal 2018 Highlights Continued progress toward stated objectives Organic growth Mutual fund Institutional across all lines of net sales of net sales of business $136 million1 $478 million Additional Adjusted diluted $75 million AUM growth of commitment EPS of $0.64 21% higher than $2 billion to al
Slide 6: Line of Business Performance
Line of Business Performance Organic growth partly offset by market declines ($ millions) Q4 2017 Q4 2018 Change Mutual funds 19,111 18,713 2% Institutional, Sub Advisory & ETF 11,782 12,475 6% Private Client 5,517 5,513 0% Alternatives 902 1,011 12 % Total 37,312 37,712 1% 6
Slide 7: Retail Business Review
Retail Business Review IFIC Industry Net Sales ($B)1 AGF Net Sales ($B)2 Retail Mutual Fund Mutual Fund 45.0 136 30.1 (59) (433) (405) 7.5 (1,111) (1,164) FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 (1) Industry long-term funds net sales per IFIC; based on AGF fiscal year. (2) AGF retail mutual fund n
Slide 8: Investment Management
Investment Management All seven One U.S. ETF 43% Canadian ETFs recognized by of AUM above with one year ETF.com as median over track records one of the top one year1 ranked above performing ETFs median1 of 2018 (1) As at December 31, 2018. 8
Slide 9: Financial Results – Summary
Financial Results – Summary Sequential Quarter Year Over Year Fav / Fav / ($ millions, except per share amounts) Q4-181 Q3-182 20183 20174 Unfav Unfav Revenue 108.5 116.5 (6.9%) 450.2 455.5 (1.2%) Revenue (Adjusted) 107.0 116.5 (8.2%) 448.7 445.5 0.7% SG&A 48.8 51.0 4.3% 213.3 211.0 (1.1%) SG&A (Adj
Slide 10: Financial Results – BPS Detail
Financial Results – BPS Detail (bps of average AUM) Q4-18 TTM Average AUM ($B)1 37.0 36.7 Average Mutual Fund 19.0 19.1 Average Institutional, Sub-Advisory, ETFs & 18.0 17.6 Private Client Revenue (bps)2 108 114 Less: Trailer Fees (bps) 33 35 SG&A (bps)3 54 58 EBITDA (bps)2,3 22 22 (1) Average AUM e
Slide 11: Capital & Liquidity
Capital & Liquidity Dividend payout ratio, excluding one-time items, of 55% on a trailing twelve months basis 400% 20 350% 300% 15 16.1 250% ($ millions) 200% 12.9 12.8 10 150% 10.5 100% 107% 5 5.9 50% 49% 60% 49% 39% 0% - -50% Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Adjusted free cash flow Dividend % of adju
Slide 12: IFRS 15 Impact
IFRS 15 Impact Accounting Treatment Current Revised (IFRS 15) Certain fee waivers and Recorded in SG&A Netted against revenue reimbursements made to the funds Capitalized and amortized DSC payments Expensed over the redemption period Fiscal 2018 Income Statement ($M) 2018 IFRS 15 2018 As Reported Ad
Slide 13: 2019 Focus & Priorities
2019 Focus & Priorities Maintain Position AGF Above median trajectory of Leverage the to reach investment improvement AGFiQ $5 billion performance in retail and platform in alternative institutional assets 13
Slide 14: Thank You!
Thank You! To learn more about AGF’s history visit: www.agf.com/ca/en/about- agf/our-story