Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q3 2021 Earnings Presentation
34 slides from Fiera Capital Corporation Class A's earnings presentation, Nov 11, 2021
Slide 1: Q3 2021 Results
November 11, 2021 Q3 2021 Results
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of applicable Canadian securities legislation. These forward-looking statements relate to future events or future performance, and reflect management’s expectations or beliefs regarding future events,
Slide 3: Conference Call Participants
Conference Call Participants Jean-Philippe Lemay Global President and Chief Operating Officer Lucas Pontillo Executive Vice President and Global Chief Financial Officer 3
Slide 4: Topics for Discussion
Topics for Discussion Q3 2021 highlights AUM Private Markets update Public Markets update Distribution update Financial performance 4
Slide 5: Q3 2021 Highlights
Q3 2021 Highlights AUM $1.3B increase ( 0.7%) in Q3 2021 $180.8B as at $1.6B increase ( 0.9%) over the last twelve months Sept 30, 2021 Organic revenue growth of 3.1% anticipated from last twelve-month flows Continued execution on our catalysts for growth Business Performance Multiple developmen
Slide 6: Q3 2021 Organic Growth Update By Investment Platform
Q3 2021 Organic Growth Update By Investment Platform Flows ($B) Net Organic Growth Net New Net Organic Growth + Subscriptions1 New Subscriptions Public Markets (1.6) - (1.6) Private Markets 0.5 0.5 1.0 Total (1.1) 0.5 (0.6) Estimated Annualized Revenue Impact ($M) Net Organic Growth Net New Net Orga
Slide 7: Private Markets Platform Update
Private Markets Platform Update AUM of $15.0B – 7.1% increase in Q3 2021 Private Markets AUM of $15.0B an increase of $1.0B, or 7.1%, in Q3 2021 • new subscriptions of $715M in Q3 2021 $15.0B • capital deployed of $550M Select Platform Highlights AUM1 Infrastructure Deployed $1.2B of capital dur
Slide 8: Private Markets – A Catalyst for Growth
Private Markets – A Catalyst for Growth Private Markets AUM1 ($B) Private Markets AUM up $7.3B, or 95%, since September 30, 2018 Bolsters our client offering while diversifying revenues Acts as a revenue accelerator as a result of higher fees Note: Subtotals and totals may not reconcile due to round
Slide 9: Investment Performance Update
Investment Performance Update1 Select Private Markets Investment Strategies Return2 Gross IRR3 1-YR Q3 2021 Absolute (since inception) Absolute Return4 Return4 Real Estate Fiera Real Estate CORE Fund L.P. 8.85% - 4.17% 17.10% Fiera Real Estate Small Cap Industrial Fund L.P. 14.46% - 6.44% 25.24% Inf
Slide 10: Public Markets Update
Public Markets Update Strengthening Global Equity Public Markets AUM of $165.8B, as at September 30, 2021 An increase of $0.3B compared to June 30, 2021 Closure of the OCCO emerging markets fund to rationalize the platform, Q3 2021 AUM $165.8B impact of $0.5B Global Equity Update AUM1 Fiera Atla
Slide 11: Investment Performance Update
Investment Performance Update1 94% of equity AUM and 96% of fixed income AUM beating benchmarks over 3 years2 Key Public Market Q3 2021 1-Year 3-Year Investment Strategies1 Added Added Added Return Return Return value Value Value Equity Investment Strategies Atlas Global Companies 3.46% 1.16% 22.49%
Slide 12: Q3 2021 Organic Growth Update By Distribution Channel
Q3 2021 Organic Growth Update By Distribution Channel Flows by Distribution New Lost Contributions Net Net New Net Organic Channel ($B) Mandates Mandates from Existing Organic Growth Subscriptions1 Growth + Net New Clients Subscriptions Institutional 1.5 (0.3) (1.9) (0.7) 0.5 (0.2) Financial Interme
Slide 13: Estimated Organic Revenue Growth
Estimated Organic Revenue Growth Net Organic AUM Growth + Net New Q3 2021 YTD 2021 LTM Sept 30, Committed Subscriptions ($B) 2021 undeployed Data presented excluding AUM and revenues related to Capital2 dispositions1 Institutional (0.2) 1.1 1.8 1.8 Financial Intermediaries (0.4) (0.2) (0.8) - Privat
Slide 14: Total Revenues up $4.2M Year Over Year
Total Revenues up $4.2M Year Over Year Excluding the Impact of Dispositions1, Y-o-Y Revenues Would Have Increased by $31.0M, or 22% Revenues ($M) Excluding the impact of divestitures 143.5 169.1 150.1 164.6 174.5 Last twelve months (“LTM”) ($M) 703.9 695.1 699.1 699.6 703.8 LTM Excluding the impact
Slide 15: Selling, General and Administrative Expenses (SG&A)
Selling, General and Administrative Expenses (SG&A) Excluding Share-Based Compensation SG&A ($M) SG&A ($M) – Excluding Dispositions1 Q3 2021 vs Q3 2020 2.5% 21.6% 2.0% 18.6% SG&A ($M) SG&A ($M) – Excluding Dispositions1 Q3 2021 vs Q2 2021 4.5% 6.0% 4.3% 4.8% SG&A excluding share-base
Slide 16: Net Earnings & Adjusted Net Earnings
Net Earnings1 & Adjusted Net Earnings1,2 Reconciliation of Q3 2021 Adjusted net earnings1,2 ($M) $0.02 per share basic $0.36 per share basic and diluted $0.34 diluted 1) Attributable to Company shareholders 2) Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA a
Slide 17: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1 and Adjusted EBITDA Margin1 Quarterly Last Twelve Months 2 2 2 LTM Adjusted EBITDA margin trending above 30% 1) Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnings per
Slide 18: Financial Leverage trending downward
Financial Leverage trending downward Funded Debt Ratio at 2.29x Net Debt1 ($M) Funded Debt2 ($M) Leverage Ratios Net Debt3 Funded Debt4 1. Represents the carrying amounts of long-term debt, net and convertible debt, net, net of cash and cash equivalents, as reported in the condensed consolidated fin
Slide 19: Returning Value to Shareholders
Returning Value to Shareholders In 2021, $78.7M Returned to Shareholders through September 30 In 2021, 1.2M class A subordinate voting shares (“Class A Shares”) purchased and Normal Course Issuer cancelled for total consideration of $13.4M through September 30 Bid (“NCIB”) Q1 2021: 620,263 Class A
Slide 20: Fiera Capital's Value Proposition
Fiera Capital’s Value Proposition A diversified platform that further diversifies AUM and revenue streams, by asset class and also geographically Growing Private Markets Higher base management fee business, in addition to generating commitment, transaction and performance fees Strong Investment Soli
Slide 21: Appendix A: Who We Are
<> FIERACAPITAL APPENDIX A Who We Are
Slide 22: Fiera Capital
Fiera Capital A Values-Driven, Leading Independent Asset Manager FOUNDED 2003 ASSET MANAGER RANKING (by AUM) AUM C$180.8 billion1 SYMBOL (TSX) FSZ.TO 3rd 64th 141 st MARKET CAP C$1,120 million4 Canada2 North America3 Global3 Leading, independent asset management firm with a growing global presence a
Slide 23: Growing our Portfolio Through a Competitive Investment Offering
Growing our Portfolio Through a Competitive Investment Offering AUM ($B) LTM Revenues ($M) 1) Dispositions 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 termination
Slide 24: Expanding our Global Footprint
Expanding our Global Footprint APPROXIMATELY 850 employees INCLUDING SOME 250 INVESTMENT PROFESSIONALS Calgary Halifax London Toronto Montreal Frankfurt Boston Dayton New York Hong Kong Singapore As at September 30, 2021 24 24
Slide 25: Revenue Diversification
Revenue Diversification Q3 2021 Total Revenues – $174.9M By Geography By Distribution Channel By Asset Class1 Canada 57% Institutional 48% Equity 65% U.S. 26% Financial intermediaries 29% Fixed income 16% Europe and other 17% Private wealth 13% Private alternatives 19% Other 10% Liquid alternatives
Slide 26: Underpinned by a Diversified Asset Base
Underpinned by a Diversified Asset Base AUM as at September 30, 2021 – $180.8B By Geography By Distribution Channel By Asset Class Canada 65% Institutional 52% Equity 51% U.S. 23% Financial intermediaries 40% Fixed income 41% Europe and other 12% Private wealth 8% Private alternatives 8% Liquid alte
Slide 27: Committed to Responsible Investing
Committed to Responsible Investing 2002 2009 2014 2016 2017 2018 2019 2020 2021 Signatory of New Global New proxy Established Member of the Updated Proxy Established Proxy Voting Launched our voting policy the United Subscribed to Proxy Voting Canadian Voting Policy Global CSR Policy first Impact an
Slide 28: Our Strategy – Investment Approach
Our Strategy – Investment Approach We differentiate ourselves by 1 2 3 Offering Delivering True Leading Customized Alpha in Alternatives Solutions 28
Slide 29: 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 $5.7B Real Estate $91.6B Small Cap, Emerging and Frontier Strategies $4.9B Private Debt $165.8B Canadian Active Universe Strategies $15
Slide 30: Committed to Long-Term Investment Excellence
Committed to Long-Term Investment Excellence Over 90% of AUM Beating Benchmarks Over 3 Years1 Equity Fixed Income 1) Percentages exclude AUM in segregated accounts managed on behalf of private wealth clients, discretionary accounts, Asia-based accounts, private alternative investment strategies and
Slide 31: Appendix B: Returning Value to Shareholders
APPENDIX B Returning Value to Shareholders 31
Slide 32: Rewarding Shareholders
Rewarding Shareholders ($ per share) 1,2 1) Earnings 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) as well as non-cash items are not standardized measures prescri
Slide 33: Thank You
Thank You Investor Relations Contact: Mariem Elsayed Director, Investor Relations melsayed@fieracapital.com T 514 954-6619 33
Slide 34: 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