AGF Management Limited Class B · TSX:AGF.B
AGF Management Limited Class B — Q2 2009 Earnings Presentation
21 slides from AGF Management Limited Class B's earnings presentation, Jun 24, 2009
Slide 1: Q2 2009 Financial & Operating Results
AGF MANAGEMENT LIMITED Q2 2009 Financial & Operating Results June 24, 2009
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of June 24, 2009. 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 securities
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS Speaking: • Blake Goldring, M.S.M., CFA, Chairman & Chief Executive Officer • Greg Henderson, CA, Senior Vice-President & Chief Financial Officer In Attendance: • Mario Causarano, CA, President & Chief Operating Officer, AGF Trust Company • Rob Badun, MBA, Executive Vice
Slide 4: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS • Nine recognitions at the 2009 Canadian Lipper Awards including: – Best Overall Fund Family and Best Mixed Asset Fund Family – Best Canadian Equity Balanced Fund • Realignment of our retail, institutional and high-net-worth businesses under one banner “AGF Investments” – C
Slide 5: Overview of Q2-2009 Results
OVERVIEW OF Q2-2009 RESULTS • Global market volatility and weakness in gross mutual fund sales led to a 27.7% decline in AUM to $37.4 billion year-over-year – AUM increased 14.7% from $32.6 billion at February 28, 2009 • Revenue declined 26.1% year-over-year with a 30.6% decline in Investment Manage
Slide 6: Performance: Long-Term Value to Shareholders
PERFORMANCE: LONG-TERM VALUE TO SHAREHOLDERS TOTAL RETURN ANNUALIZED SINCE INCEPTION (AUG. 1968) AGF.B 12.93% TSX Composite 9.44% TOTAL RETURN ANNUALIZED OVER 10 YEARS AGF.B 3.77% TSX Composite 6.39% TOTAL RETURN OVER 1 YEAR AGF.B (37.25%) TSX Composite (26.99%) TOTAL RETURN TO DATE FOR FISCAL 2009
Slide 7: Selling, General and Administrative Expenses
AGF MANAGEMENT LIMITED: SELLING, GENERAL AND ADMINISTRATIVE EXPENSES SG&A Expenses – AGF Management Limited Quarter ended May 31, Increase/ ($ millions) (Decrease) 2009 2008 Investment Management Operations 38.7 46.0 (7.3) Trust Company Operations 8.4 10.9 (2.5) Consolidated 47.1 56.9 (9.8) SG&A Exp
Slide 8: Capital Stewardship: Dividends
CAPITAL STEWARDSHIP: DIVIDENDS 1.00 1.00 0.90 R 2 3 % 0.80 CA G 0.70 $/share 0.60 0.50 0.40 0.30 0.20 0.13 0.10 0.00 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 • Quarterly dividends per share paid/declared in fiscal 2009: – $0.25 per share paid on January 20, 2009 – $0.25 per share paid
Slide 9: Q2 2009 Financial Overview
AGF MANAGEMENT LIMITED: Q2 2009 FINANCIAL OVERVIEW FINANCIAL RESULTS COMPARED TO Q2 2008 AUM decreased 27.7% Revenue decreased 26.1% EBITDA decreased 44.7% FINANCIAL RESULTS COMPARED TO Q1 2009 AUM increased 14.7% Revenue increased 4.0% EBITDA increased 14.5% 9
Slide 10: Investment Management Operations: Assets Under Management
INVESTMENT MANAGEMENT OPERATIONS: ASSETS UNDER MANAGEMENT (AUM) 60 $51.8 50 19.2 18.6 40 $37.4 $ billions 12.8 13.7 30 4.0 11.8 3.8 20 3.0 2.8 2.7 28.6 26.4 10 19.8 18.1 20.9 0 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Mutual Funds High-Net-Worth Institutional 10
Slide 11: Trust Company Operations: Loan Assets
TRUST COMPANY OPERATIONS: LOAN ASSETS 5.0 $4.3 $4.4 $4.4 $4.3 4.5 $4.1 4.0 3.5 2.3 2.4 2.4 2.3 3.0 2.3 $ billions 2.5 2.0 1.5 1.0 2.0 2.0 2.0 2.0 1.8 0.5 0.0 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Real Estate Loans Investment Loans 11
Slide 12: AGF Management Limited: Revenue, EBITDA and SG&A
AGF MANAGEMENT LIMITED: REVENUE, EBITDA AND SG&A 200 194.3 184.7 150 152.2 138.0 143.5 $ millions 100 88.6 81.5 54.0 53.0 49.0 50 56.8 55.3 41.2 42.8 47.3 0 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Revenue EBITDA SG&A EBITDA Margin 45.6% 44.1% 35.5% 31.0% 34.1% 12
Slide 13: Investment Management Operations: Revenue, EBITDA and SG&A
INVESTMENT MANAGEMENT OPERATIONS: REVENUE, EBITDA AND SG&A 200 150 162.9 155.2 $ millions 123.1 100 109.9 113.0 71.5 66.0 55.3 44.5 41.8 50 46.0 44.8 38.7 31.3 34.8 0 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Revenue EBITDA SG&A EBITDA Margin 43.9% 42.5% 44.9% 31.7% 37.0% 13
Slide 14: Trust Company Operations: Revenue, EBITDA and SG&A
TRUST COMPANY OPERATIONS: REVENUE, EBITDA AND SG&A 35 30 25 28.4 27.1 28.2 26.7 26.6 20 $ millions 14.4 15 12.4 9.9 8.6 8.4 10 10.9 10.6 5 7.0 4.9 0 (3.8) Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 -5 -10 Revenue* EBITDA SG&A EBITDA Margin 46.4% 50.7% NM 25.8% 17.4% 14 * Net interest income, other reve
Slide 15: Trust Company Operations: Loan Portfolio as at May 31, 2009
TRUST COMPANY OPERATIONS: LOAN PORTFOLIO AS AT MAY 31, 2009 Real Estate Secured Loans Insured Mortgage Loans $573.2 million 32% $550.8 million HELOCs 31% Real Estate $671.9 million Conventional Mortgage Investment Secured Loans Loans Loans 37% 44% $1.8 Investment Loans $2.3 billion billion Secured 5
Slide 16: Trust Company Operations: Gross Impaired Loans
TRUST COMPANY OPERATIONS: GROSS IMPAIRED LOANS 80 1.5% 1.60% 1.4% 70 1.40% 60 1.0% 1.20% $ millions 50 1.00% 40 0.7% 0.80% 0.6% 30 60.1 60.9 0.60% 45.4 20 0.40% 29.9 25.5 10 0.20% 0 0.00% Q2 2008* Q3 2008* Q4 2008 Q1 2009 Q2 2009 Gross Impaired Loans As % of Total Loans O/S *Restated to include insu
Slide 17: Trust Company Operations: Allowance for Loan Losses
TRUST COMPANY OPERATIONS: ALLOWANCE FOR LOAN LOSSES 1.40% 1.2% 1.20% 1.0% 1.00% 50 0.8% $ millions 0.80% 0.5% 0.60% 0.5% 49.2 44.3 0.40% 37.1 20.1 20.3 0.20% 0 0.00% Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Allowance for Loan Losses As % of Total Loans O/S 17
Slide 18: Trust Company Operations: Provision for Loan Losses
TRUST COMPANY OPERATIONS: PROVISION FOR LOAN LOSSES 1.9% 2.00% 1.80% 1.5% 1.60% 1.40% $ millions 1.1% 1.20% 1.00% 20.5 0.80% 14.9 0.60% 0.3% 0.3% 11.5 0.40% 0.20% 3.4 3.4 0 0.00% Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Provision for Loan Losses As % of Total Loans O/S 18
Slide 19: AGF Management: Utilization of Free Cash Flow
AGF MANAGEMENT: UTILIZATION OF FREE CASH FLOW 30 27.9 21.4 19.7 19.9 20 $ millions 15.4 10 1.2 0.3 0 Dividends DSC Acquisition of Subsidiaries Purchase of PPE Q2 2008 Q2 2009 19
Slide 20: AGF Management Limited
AGF MANAGEMENT LIMITED • Emphasis on profitability enhancement initiatives • Emphasis on cost reduction activities • Maintain strong financial position • Maintain competitive advantages • Deliver value to stakeholders 20
Slide 21: Questions
Positioned forthe future Mi QUESTIONS