Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q3 2022 Earnings Presentation
40 slides from Fiera Capital Corporation Class A's earnings presentation, Nov 9, 2022
Slide 1: Q3 2022 Results
November 9, 2022 Q3 2022 Results
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements relating to future events or future performance and reflecting management’s expectations or beliefs regarding future events including business and economic conditions and Fiera Capital Corporation’s (the “Company” or “F
Slide 3: Conference Call Participants
Conference Call Participants Jean-Philippe Lemay Global President and Chief Executive Officer Lucas Pontillo Executive Vice President and Global Chief Financial Officer 3
Slide 4: Topics for Discussion
Topics for Discussion Q3 2022 Highlights Distribution Performance Investment Platform ▪ Private Markets ▪ Public Markets Financial Performance 4
Slide 5: Q3 2022 Highlights
Q3 2022 Highlights AUM - $158.3B $1.6B increase ( 1.0%) in Q3 2022 September 30, 2022 ▪ Private Markets increased $3.3B ( 22.0%) over the last twelve months Gross new mandates of $2.7B achieved in Q3 2022 expected to generate $15.0M in annualized Distribution based management fees Performance ▪ Po
Slide 6: AUM Overview
AUM Overview QoQ ($B) ▪ AUM up $1.6B, or 1.0% ▪ Net positive flows from new mandates outpacing lost mandates ▪ Negative net contributions from portfolio rebalancing ▪ Favourable FX impact reflected in Market and Other YoY ($B) ▪ AUM down $22.5B, or 12.5% ▪ Driven by unfavourable equity and fixed inc
Slide 7: AUM Flows Across Platform and Geography – QTD Q3 2022
AUM Flows Across Platform and Geography – QTD Q3 2022 Canada ($B) Private Markets ($B) - United States ($B) Public Markets ($B) 33.43 Europe & Asia ($B) 13. Subtotals and totals may not reconcile due to rounding. 1Market and Other includes the impact of market changes, income distributions and FX. 7
Slide 8: Organic Growth Update
Organic Growth Update QTD Flows by Platform New Lost Net Contributions and Distribution Channel Public Private Public Private Public Private Net Organic ($B) Markets Markets Markets Markets Markets Markets Growth Institutional 0.9 1.0 (0.3) (0.2) (0.4) (0.1) 1.0 Financial Intermediaries 0.4 ― (0.3)
Slide 9: Institutional Highlights
Institutional Highlights Q3 2022 Highlights QTD AUM Flows In C$ billions Canada ▪ Positive net organic growth in Public Markets of $0.6B from major wins in Fixed Income with new and existing clients ▪ Wins in the Real Estate platform drove the gross flows of $0.5B in Private Markets U.S. ▪ New manda
Slide 10: Financial Intermediaries Highlights
Financial Intermediaries Highlights Q3 2022 Highlights QTD AUM Flows In C$ billions Canada ▪ Major mandate won in Private Credit, driving gross inflows in the channel of $0.4B ▪ Infrastructure equity strategy approved on two Canadian platforms in the quarter U.S. ▪ Inflows into Tax Advantaged US fix
Slide 11: Private Wealth Canada Highlights
Private Wealth Canada Highlights Q3 2022 Highlights QTD AUM Flows In C$ billions Canada ▪ Despite net organic outflows in Public Markets, Private Markets Private Wealth Canada saw positive net organic growth in the quarter ▪ Opportunities for Private Markets exposure continues to prove attractive, a
Slide 12: Private Markets – A Catalyst for Growth
Private Markets – A Catalyst for Growth AUM1 ($B) LTM Total Revenues2 ($M) Subtotals and totals may not reconcile due to rounding. Revenue growth of Private Markets surpassing its AUM growth AUM up $5.8B, or 46%, since September 30, 2019 → 3-yr CAGR of 13% $1.1B of subscriptions received in Q3 2022
Slide 13: Investment Performance Update: Select Private Markets Investment Strategies
Investment Performance Update1 Select Private Markets Investment Strategies Return2 Gross IRR3 1-YR Q3 2022 Absolute (since inception) Absolute Return4 Return4 Real Estate Fiera Real Estate CORE Fund L.P. 10.05% - 1.99% 20.76% Fiera Real Estate Small Cap Industrial Fund L.P. 16.29% - 2.73% 29.46% In
Slide 14: Percentage of Public Markets Assets Outperforming at Quarter-End
Percentage of Public Markets Assets Outperforming at Quarter-End Fixed Income One Year Three Years Five Years Equity One Year Three Years Five Years Percentages exclude AUM in segregated accounts managed on behalf of private wealth clients, discretionary accounts, Asia-based accounts and accounts fo
Slide 15: Investment Performance Update
Investment Performance Update Key Public Market Q3 2022 1-Year 3-Year Investment Strategies1 Added Added Added Return Return Return value Value Value Equity Investment Strategies Atlas Global Companies 0.43% 0.50% (21.19%) (8.36%) 8.93% 3.07% Global Equity (0.13%) (0.06%) (12.16%) 0.68% 8.32% 2.46%
Slide 16: Total Revenues
Total Revenues ($M) YTD’21: $489.6 vs. YTD’22: $496.7 Subtotals and totals may not reconcile due to rounding. Q3 2022 Total Revenues of $160.6M, $14.3M, or (8.2%), compared to Q3 2021 ▪ Mainly from Public Markets revenues ( $25.5M), partly offset by Private Markets revenues ( $11.2M) Q3 2022 Bas
Slide 17: Private Markets Revenues
Private Markets Revenues ($M) YTD’21: $107.6 vs. YTD’22: $142.4 Subtotals and totals may not reconcile due to rounding. Q3 2022 Base management fees of $38.9M, $9.1M, or 30.5%, compared to Q3 2021 ▪ Additional capital deployment and market appreciation across essentially all strategies Q3 2022 Comm
Slide 18: Public Markets Revenues
Public Markets Revenues ($M) YTD’21: $375.1 vs. YTD’22: $348.6 Subtotals and totals may not reconcile due to rounding. Q3 2022 Base management fees of $106.8M, $24.0M, or 18.4%, compared to Q3 2021 ▪ Due to a reduction in AUM across distribution channels as a result of unfavourable equity market im
Slide 19: Selling, General and Administrative Expenses (“SG&A”)
Selling, General and Administrative Expenses (“SG&A”) QoQ ($M) SG&A excl. SBC Total Revenues ▪ SG&A excluding share-based compensation (“SBC”) decreased by $2.1M, or 1.8%, in Q3 2022 vs Q2 2022 ▪ Primarily due to lower sub- (2.0%) advisory fees and lower travel and marketing (1.8%) expenses YoY
Slide 20: Net Earnings & Adjusted Net Earnings
Net Earnings1 & Adjusted Net Earnings1,2 Reconciliation of Q3 2022 Adjusted net earnings1,2 ($M) $0.08 per share basic $0.23 per share basic $0.08 diluted $0.23 diluted 1Attributable to the Company’s shareholders 2Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBIT
Slide 21: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1 and Adjusted EBITDA Margin1 LTM Adjusted EBITDA Margin Trending Above 30% Quarterly Last Twelve Months 1Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnings per share (
Slide 22: Per Share Metrics
Per Share Metrics ($ per share) 1Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnings per share (adjusted EPS) are not standardized measures prescribed by IFRS. These non-IFRS measures
Slide 23: LTM Free Cash Flow
LTM Free Cash Flow LTM free cash flow1 relative to LTM dividends paid ($M) ▪ LTM free cash flow of $92.5M in Q3 2022, compared to $131.4M in Q3 2021 ▪ Decrease primarily due to increase in cash used to settle PPO's and a decrease in cash from operating activities 1LTM Free Cash Flow is not a standar
Slide 24: Financial Leverage Ratios
Financial Leverage Ratios Funded Debt Ratio at 2.35x Net Debt1 ($M) Funded Debt2 ($M) Leverage Ratios Net Debt3 Funded Debt4 1Represents the carrying amounts of long-term debt and convertible debt, net of cash and cash equivalents, as reported in the statement of financial position in the condensed
Slide 25: Returning Value to Shareholders
Returning Value to Shareholders $22.1M Returned to Shareholders in Q3 2022 Renewal of the NCIB on August 11, 2022, allowing for the purchase for Normal Course Issuer cancellation of up to 4,000,000 Class A subordinate voting shares (“Class A Bid (“NCIB”) Shares”) over the twelve-month period ending
Slide 26: Progress on Our Strategy in 2022
Progress on Our Strategy in 2022 Private Markets AUM of $18.3B as at Sept 30; 3-year revenue CAGR of 28% New subscriptions of $1.0B, with $0.7B of capital deployed in Q3 2022 Growing Private ▪ Undeployed capital of $2.3B provides strong pipeline for future investment Markets opportunities An increas
Slide 27: Appendix: Who We Are
<> FIERACAPITAL APPENDIX Who We Are
Slide 28: Fiera Capital: Statement of Purpose
Fiera Capital Statement of Purpose World-class portfolio of high conviction, sophisticated investment capabilities: We are committed to delivering investment excellence across our range of public and private market strategies, which are underpinned by independence of perspective, disciplined process
Slide 29: Progressing our Mission and Purpose
Progressing our Mission and Purpose “We are passionate about creating innovative investment solutions by being efficient allocators of capital with the objective of fostering sustainable prosperity for all our stakeholders.” EFFICIENT CAPITAL ALLOCATOR Solutions ESG Solving for specific needs of our
Slide 30: What Being an Efficient Allocator of Capital Means for Fiera Capital
What Being an Efficient Allocator of Capital Means for Fiera Capital We allocate capital efficiently … … To construct optimized portfolios to deliver on client outcomes. 1 Our focus is on delivering the specific risk/return outcome the client needs with the highest probability of success. … To offer
Slide 31: Fiera Capital: A Values-Driven, Leading Independent Asset Manager
Fiera Capital A Values-Driven, Leading Independent Asset Manager FOUNDED 2003 ASSET MANAGER RANKING (by AUM) AUM C$158.3 billion1 SYMBOL (TSX) FSZ.TO 3rd 67th 147th MARKET CAP C$891.9 million4 Canada2 North America3 Global3 Leading, independent asset management firm with a growing global presence an
Slide 32: Growing our Portfolio Through a Competitive Investment Offering
Growing our Portfolio Through a Competitive Investment Offering AUM ($B) LTM Revenues ($M) 1 1 1 1Dispositions include: the sale of the rights to manage the retail mutual funds of Fiera Investments LP in June 2020; the sale of WGAM in December 2020; the sale of Bel Air in March 2021; and the termina
Slide 33: AUM by Segments
AUM by Segments AUM as at September 30, 2022 – $158.3B By Geography By Distribution Channel By Asset Class Canada 68% Institutional 52% Public Markets – 46% Equity U.S. 22% Financial intermediaries 40% Public Markets – 42% Europe and other 10% Private wealth 8% Fixed income Private markets 12% Liqui
Slide 34: Revenue Diversification
Revenue Diversification Q3 2022 Total Revenues – $160.6M By Geography By Distribution Channel1 By Asset Class2 Canada 62% Institutional 58% Equity 59% U.S. 22% Financial intermediaries 27% Fixed income 15% Europe and Asia 16% Private wealth 15% Private markets 26% Liquid alternatives <0% and other 1
Slide 35: Expanding our Global Footprint
Expanding our Global Footprint 864 employees INCLUDING SOME 229 INVESTMENT PROFESSIONALS Calgary Halifax London Toronto Montreal Frankfurt Boston Dayton New York Hong Kong Singapore As at September 30, 2022 35 35
Slide 36: Our Responsible Investment Journey
Our Responsible Investment Journey Further enhancement Foundation & Promotion Further Promotion & Transparency & & creation of new Increasing the capabilities Advocacy solutions 2002 2009 2014 2016 2017 2018 2019 2020 2021 2022 ▪ Established Proxy Voting Policy prior to the ▪ Subscribed to MSCI ESG
Slide 37: Breadth of Innovative Investment Solutions
Breadth of Innovative Investment Solutions ASSET ALLOCATION BALANCED MANDATES OVERLAY STRATEGIES ADVISORY Public Markets Private Markets Large Cap Equity strategies $6.5B Real Estate $73.1B1 Small Cap, Emerging and Frontier Strategies $5.7B Private Debt $140.0B Canadian Active Universe Strategies $1
Slide 38: Glossary
Glossary AUM Organic Flows: Gross - Represents new mandates in Public Markets, and new subscriptions, including committed, undeployed capital in Private Markets Net - Represents the sum of: new mandates in Public Markets; new subscriptions, including committed, undeployed capital in Private Markets;
Slide 39: Thank You
Thank You Investor Relations contacts: Marie-France Guay Senior Vice President, Treasury and Investor Relations mguay@fieracapital.com T 514 294-5878 39
Slide 40: Important Disclosures
Important Disclosures Fiera Capital Corporation is a global asset management firm with affiliates in various jurisdictions (collectively, “Fiera Capital”). The information and opinions expressed herein are provided for informational purposes only. It is subject to change and should not be relied upo