19 slides from Agf Management Limited Class B's earnings presentation, Jun 26, 2024
Slide 1: AGF Management Limited Earnings Conference Call Second Quarter 2024
AGF Management Limited Earnings Conference Call Second Quarter 2024
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements The forward-looking information is provided as of June 26, 2024. 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 Presenting Kevin McCreadie, CFA, MBA Chief Executive Officer & Chief Investment Officer Ken Tsang, CFA, CPA, MBA Chief Financial Officer Available for questions Judy G. Goldring, LL.B, LL.D, ICD.D President & Head of Global Distribution Ash Lawrence, MBA Head of AGF Capi
Slide 4: Today's Discussion
Today’s Discussion • Highlights of the 2nd Quarter of Fiscal 2024 • Business Updates • Financial Results • Capital & Liquidity • Investment Highlights 4
Slide 5: Q2 2024 Highlights
Q2 2024 Highlights AGF continued to make progress against strategic objectives Assets1 of $47.8 billion Strong Adjusted Diluted 16% higher year over Investment Performance EPS of $0.35 year Closed $329 million Strong Financial $45 million in short- and long-term Position acquisition of Kensington in
Slide 6: Assets Under Management and Fee-earning Assets
Assets Under Management and Fee-earning Assets1,2 AUM driven by acquisition of KCPL and growth in mutual funds AUM ($ millions) Q2 2024 Q2 2023 Change AGF Investments3 Mutual funds 26,961 23,631 14% ETFs and SMA 1,800 1,400 29% Segregated accounts and sub-advisory 6,313 6,876 (8%) AGF Private Wealth
Slide 7: Mutual Fund Business Review
Mutual Fund Business Review Net redemptions may have stabilized for AGF Industry Sales ($B)1 AGF Retail Mutual Fund Sales ($M)2 Gross Sales Net Sales Gross Sales Net Sales 76 914 934 819 50 49 687 48 633 (3.6) (4.3) 77 (16) (19) (33) (125) (112) (194) (151) Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q2-23 Q3-23
Slide 8: ETFs and SMA AUM
ETFs and SMA AUM Continued to show strong growth YoY CAGR +49% 1,800 1,400 816 Q2 2022 Q2 2023 Q2 2024 Closing AUM ($M) 8
Slide 9: Adjusted Financial Results
Adjusted Financial Results1,2 Kensington will add $1.7M to Q2 Adjusted EBITDA AGF Capital Partners Traditional AGF Capital Q2 2024 Wealth & Partners KCPL Total ($ millions) Asset Mgmt. (excl. KCPL) Total Net Revenue3 85.0 5.9 6.1 97.0 Adjusted SG&A4 55.6 0.0 4.4 60.0 Adjusted EBITDA 29.4 5.9 1.7 37.
Slide 10: Q2 Adjusted EBITDA
Q2 Adjusted EBITDA1 Adjusted EBITDA excludes non-cash acquisition related expenses Q2 Adjusted EBITDA bridge ($ millions) 37.0 1.7 6.5 26.6 2.2 Q2 Reported FVA on LLTIP Expense Severance & Q2 Adjusted EBITDA Contingent accrual (SG&A) Corp Dev EBITDA Consideration and expenses Put Obligation (1) Adju
Slide 11: Adjusted Financial Results
Adjusted Financial Results1,2 Unfavourable comparative results due to elevated fair value adjustments in prior periods Sequential Quarter Year over Year Consolidated Adjusted Results ($ millions, except per share amounts) Q2 2024 Q1 2024 Variance Q2 2023 Variance Total Net Revenue3 97.0 103.0 (6%) 9
Slide 12: Adjusted Financial Results Split
Adjusted Financial Results1,2 Split Traditional Asset and WM favourable, AGF Capital Partners unfavourable due to FVA Traditional Asset and Wealth Management Sequential Quarter Year over Year ($ millions, except per share amounts) Q2 2024 Q1 2024 Variance Q2 2023 Variance Net management, advisory an
Slide 13: Financial Results – BPS Detail
Financial Results – BPS Detail1,2 Higher net mgmt. fee driving higher EBITDA Bps Average AUM and Bps Detail Sequential Quarter TTM Q3 2023 to (Average AUM, $ billions) Q2 2024 Q1 2024 Q2 2024 Average AUM excl. AGF Capital Partners 43.3 41.2 40.9 ($B)3 Average Mutual Fund 26.6 25.2 25.0 Average Insti
Slide 14: Capital & Liquidity
Capital & Liquidity1 AGF has excess capital available to fund growth and return to shareholders 100 100% 90 86 90% 84 80 80 78 76 80% 70 70% 60 60% 50 50% 36% 37% 40 34% 40% 32% 31% 30 30% 20 20% 10 10% 0 0% TTM Q2 2023 TTM Q3 2023 TTM Q4 2023 TTM Q1 2024 TTM Q2 2024 TTM FCF TTM Dividend to FCF % (1
Slide 15: Enterprise value
Enterprise value Sum of the parts suggests upside to current valuation AGF Enterprise Value ($m) 586 550 36 329 2023 EBITDA Excl. Income Implied 257 from LT EV / EBITDA Investments Multiple $106m4 2.4x Market Cap 1 Net Debt 2 Enterprise LT and ST Remaining Compared to a 25% haircut to Value Investme
Slide 16: 2024 Focus & Priorities
2024 Focus & Priorities Meet updated Maintain sales Deliver consistent Build a diversified expense momentum and and repeatable private capital guidance penetrate high investment and alternatives while continuing growth distribution performance business to invest in key channels growth areas 16
Slide 17: Investment Thesis
Investment Thesis Stable cash flows to fund dividends and growth: Strong Financial • TTM free cash flow and payout ratio of $76m and 37% Position • $329m in long- and short-term investments and net debt of $36m • Supports strong dividend yield and share buybacks, while investing for growth Outperfor
Slide 18: Thank You!
Thank You! To learn more about AGF’s history visit: www.agf.com/ca/en/about- agf/our-story To learn more visit AGF.com ® The “AGF” logo and all associated trademarks are registered trademarks or trademarks of AGF Management Limited and used under licence.
Slide 19: Disclaimer
DISCLAIMER AGF Investments - AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF Internat