AGF Management Limited Class B · TSX:AGF.B
AGF Management Limited Class B — Q2 2010 Earnings Presentation
14 slides from AGF Management Limited Class B's earnings presentation, Jun 23, 2010
Slide 1: AGF Management Limited Q2 2010 Financial & Operating Results
AGF MANAGEMENT LIMITED Q2 2010 Financial & Operating Results June 23,, 2010
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of June 23, 2010. Certain information presented in these remarks and in this p presentation that is not historical factual information may y constitute forward-looking g information within the meaningg of sec
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS Speaking: p g • Blake Goldring, M.S.M., CFA, Chairman & Chief Executive Officer • Bob Bogart, CPA, Senior Vice-President & Chief Financial Officer In Attendance: • Mario Causarano, CA, President & Chief Operating Officer, AGF Trust Company • Rob Badun, MBA, Executive Vic
Slide 4: Overview of Q2 2010
AGF MANAGEMENT LIMITED OVERVIEW OF Q2-2010 Q2 2010 • AUM is at $42.9 billion, up 14.6% • Consolidated revenue is $153 $153.8 8 million • EBITDA is $62.6 million, up 27.8% year-over-year • Strong capital position and profitability at AGF Trust • Adjusted EPS (diluted) of $0 $0.35 35 • Dividends of $0
Slide 5: Product Highlights
AGF MANAGEMENT LIMITED PRODUCT HIGHLIGHTS • Three new mutual funds • AGF Pure Canadian Balanced Fund • AGF Traditional Income Fund • AGF Global Aggregate Bond Fund1 • One new institutional mandate • Global Resources • Launched prime residential mortgage product in the advisor channel 1 Launched June
Slide 6: Second Quarter Consolidated Results Overview
AGF MANAGEMENT LIMITED: SECOND QUARTER CONSOLIDATED RESULTS OVERVIEW FINANCIAL RESULTS Q2 2010 Q2 2009 % Change AUM $42,892 $37,429 14.6% Trust Loan Assets $3,350 $4,063 (17.6%) Revenue $153.8 $143.5 7.2% SG&A $48.8 $47.3 3.2% EBITDA $62.6 $49.0 27.8% EBITDA Margin 40.7% 34.1% 19.4% N t IIncome Net
Slide 7: EPS and Adjusted EPS
AGF MANAGEMENT LIMITED: EPS AND ADJUSTED EPS 0.60 Adjusted 0.50 EPS2: $0.35 0 40 0.40 e (diluted) Adjusted EPS1: 0.34 $0.40 0.30 0 19 0.19 $/share 0.20 0.25 0.00 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 1Excluding a $9.8 million reduction in income taxes in Q4 2009, adjusted EPS was $0.40. 2Excluding $4.0 mill
Slide 8: Investment Management Operations: Revenue, SG&A and EBITDA
INVESTMENT MANAGEMENT OPERATIONS: REVENUE SG&A AND EBITDA REVENUE, 150 125 132.1 130.7 132.2 120.4 113.0 100 $ millions 75 59.2 55.4 54.4 45.8 41.8 50 25 39.5 39.2 39.3 38.7 35.7 0 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Revenue SG&A EBITDA EBITDA Margin 37.0% 37 0% 38.0% 38 0% 44.8% 44 8% 41.6% 41 6% 41.9% 4
Slide 9: Investment Management Operations: EBITDA
INVESTMENT MANAGEMENT OPERATIONS: EBITDA Q2-10 TTM1 Q2-09 Average AUM ($ billions) 44.4 43.1 35.6 Average Retail 22.2 22.2 19.7 Average Institutional and H-N-W 22.2 20.9 15.9 Revenue (bps) 118 120 126 Less: Trailer Fees (bps) 31 32 33 SG&A (bps)2 37 38 47 EBITDA (bps) 50 50 46 1 Trailing twelve mont
Slide 10: Trust Company Operations: Revenue, SG&A and EBITDA
TRUST COMPANY OPERATIONS: REVENUE REVENUE, SG&A AND EBITDA 30 28.2 25 25.4 24.8 23.6 23.9 20 $ millions 15 11.1 10.4 10.4 9.2 10 8.4 9.0 9.2 8.9 9.5 5 4.9 0 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Revenue* SG&A EBITDA EBITDA Margin g 17.4% 36.2% 44.1% 46.4% 41.9% 10 * Net interest income, other revenue and RS
Slide 11: Trust Company Operations: Net Interest Margin
TRUST COMPANY OPERATIONS: NET INTEREST MARGIN (NIM) 3 3.0 0 2.5 2.6 2.3 2.4 2.4 2.0 1.0 0.0 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 NIM (%) 11
Slide 12: Trust Company Operations: Provision for Loan Losses
TRUST COMPANY OPERATIONS: PROVISION FOR LOAN LOSSES 20 15 millions 10 14.9 $m 5 7.2 4.0 4.9 3.9 0 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Provision for Loan Losses 12
Slide 13: Performance: Long-Term Shareholder Value
PERFORMANCE: LONG TERM SHAREHOLDER VALUE LONG-TERM TOTAL RETURN ANNUALIZED SINCE INCEPTION (AUG. 1968) AGF B AGF.B 13 30% 13.30% TSX Composite 9.60% TOTAL RETURN ANNUALIZED OVER 10 YEARS AGF.B 1.73% TSX Composite 4 69% 4.69% TOTAL RETURN OVER 1 YEAR AGF.B 29.44% TSX Composite 16.67% 13 As at May 31,
Slide 14: Questions
QUESTIONS LONDON UK BOSTON TORONTO VANCOUVER SASKATOON HONG KONG DUBLIN BEIJING INNIPEG HALIFAX OTTAWA