Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — Q2 2008 Earnings Presentation
16 slides from Agf Management Limited Class B's earnings presentation, Jun 25, 2008
Slide 1: AGF Management Limited Q2 2008 Financial & Operating Results
AGF MANAGEMENT LIMITED Q2 2008 Financial & Operating Results June 25, 2008
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of June 25, 2008. 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, CFA, Chairman & Chief Executive Officer Greg Henderson, CA, Senior Vice-President & Chief Financial Officer In Attendance: Randy Ambrosie, President, AGF Funds Inc. Rob Badun, President, AGF Asset Management Group Mario Causarano, CA, President
Slide 4: Q2 2008 Financial Overview
Q2 2008 FINANCIAL OVERVIEW SOLID FINANCIAL RESULTS DESPITE VOLATILE MARKETS. Revenue from continuing operations decreased * 1.3% EBITDA from continuing operations decreased * 1.6 % Income from continuing operations increased * 7.1 % Diluted EPS from continuing operations increased * 8.9 % Investment
Slide 5: Q2 2008 Overview
Q2 2008 OVERVIEW Average mutual fund AUM down 5.6% Continued market volatility. Net redemptions of $259 million Total assets under management decline 7.2% Trust loan assets rise 44.2% year over year Smith & Williamson’s net income up 51.6% year-over-year Share repurchase program – secured a $60.0 mi
Slide 6: AGF Management Limited: The Profile Has Changed
AGF MANAGEMENT LIMITED: THE PROFILE HAS CHANGED Nov. 30, 1996 May 31, 2008 High-Net-Worth $4.0B Mutual Institutional Mutual Fund & Strategic Fund Assets Accounts Assets Assets $10.0B $ 28.6B $ 19.2B Total assets: Total assets: $10.0 billion $ 51.8 billion Nov. 30, 1996 May. 31, 2008 Trust Loan Asset
Slide 7: AGF Trust Company: Gross Loan Originations
AGF TRUST COMPANY: GROSS LOAN ORIGINATIONS 700 $635 600 344 500 $452 $ millions 400 237 300 291 200 215 100 0 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Real Estate Loans Investment Loans
Slide 8: Capital Stewardship: Dividends
CAPITAL STEWARDSHIP: DIVIDENDS 1.00 1.00 12 consecutive years of dividend increases 0.90 R 24 % 0.80 C A G 0.70 $ / share 0.60 0.50 0.40 0.30 0.20 0.10 0.09 0.00 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008* * Annualized based on January 30, 2008 announcement of dividend increase.
Slide 9: Investment Management: Assets Under Management (AUM)
INVESTMENT MANAGEMENT: ASSETS UNDER MANAGEMENT (AUM) 60 55.8 51.8 50 21.1 19.8 19.8 19.2 40 17.9 $ billions 4.1 4.0 3.9 30 3.7 4.0 20 30.6 30.0 30.1 28.6 27.7 10 0 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Mutual Funds High-Net-Worth Institutional
Slide 10: AGF Trust Company: Loan Assets
AGF TRUST COMPANY: LOAN ASSETS 4.5 4.3 4.0 2.3 3.5 3.0 3.0 $ billions 1.6 2.5 2.0 2.0 1.5 1.0 1.4 0.5 0.0 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Real Estate Loans Investment Loans
Slide 11: AGF Management Limited: Revenue and EBITDA - Continuing Operations
AGF MANAGEMENT LIMITED: REVENUE AND EBITDA - Continuing Operations 225 200 175 199.1 194.3 194.3 199.2 204.9 150 $ millions 125 100 98.0 75 91.3 87.5 89.5 88.6 50 25 0 Q2 2007* Q3 2007 Q4 2007 Q1 2008 Q2 2008 EBITDA 47.8%* 45.8% 43.9% 46.1% 45.6% Margin *Includes an $8.0 million ($5.2 million net of
Slide 12: Investment Management Revenue & EBITDA - Continuing Operations
INVESTMENT MANAGEMENT REVENUE & EBITDA - Continuing Operations 200 175 171.8 173.4 172.9 165.2 162.9 150 $ millions 125 100 75 76.7 76.6 74.6 74.8 71.5 50 25 0 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 EBITDA 44.6% 44.2% 43.1% 45.3% 43.9% Margin Revenue EBITDA
Slide 13: AGF Trust Company: Revenue & EBITDA
AGF TRUST COMPANY: REVENUE & EBITDA 35.0 30.0 30.0 25.0 27.3 26.7 24.2 $ millions 23.8 20.0 15.0 18.2 10.0 13.1 12.9 12.4 10.5 5.0 0.0 Q2 2007** Q3 2007 Q4 2007 Q1 2008 Q2 2008 EBITDA 60.7% 54.1% 44.1% 47.3% 46.4% Margin * Net interest income, other revenue and securitization gains & related items.
Slide 14: Use of Free Cash Flow for the Quarter
AGF MANAGEMENT LIMITED: USE OF FREE CASH FLOW FOR THE QUARTER 100 80 60 $ millions 40 20 0 2007 2008 Investment in Trust Dividends Purchase of PPE Repayment of Debt
Slide 15: Performance: Strong Long Term Value to Shareholders
PERFORMANCE: STRONG LONG TERM VALUE TO SHAREHOLDERS TOTAL RETURN ANNUALIZED SINCE INCEPTION (AUG. 1968) AGF.B 15% TSX Composite 11% TOTAL RETURN ANNUALIZED OVER 10 YEARS AGF.B 9% TSX Composite 9% TOTAL RETURN OVER 1 YEAR AGF.B (37)% TSX Composite 7% As at May 31, 2008
Slide 16: Questions
AGF MANAGEMENT LIMITED QUESTIONS