Altus Group Limited · TSX:AIF
Altus — Investor Presentation (March 2017)
20 slides from Altus's investor presentation, March 2017
Slide 1: Investor Presentation
Investor Presentation CONNECTING THE GLOBAL REAL ESTATE MARKETPLACE TSX: AIF March 2017
Slide 2: Forward Looking Statements
Forward Looking Statements Certain information in this presentation may constitute “forward-looking information” within the meaning of applicable securities legislation. All information contained in this presentation, other than statements of current and historical fact, is forward-looking informati
Slide 3: Altus Group at a Glance
Altus Group at a Glance CONNECTING THE GLOBAL COMMERICAL REAL ESTATE MARKETPLACE Helping clients maximize the value of their real estate assets & portfolios through: Software & data solutions for CRE Independent technology-enabled CRE investment management professional services 3 altusgroup.com
Slide 4: Uniquely Positioned Market Leader: The Altus Advantage
Uniquely Positioned Market Leader Global Blue Chip Client Base • Unmatched client base in CRE industry • Relationships with top 50 CRE firms • +5,500 ARGUS software clients • 23/24 open-end ODCE funds use our benchmarking & attribution analysis data platforms Altus Analytics Existing Market Standard
Slide 5: Connecting the Global CRE Market
Connecting the Global CRE Market Providing Data for Visibility and Insight to Global CRE Market Understand How Assets Stack Up APPRAISAL MANAGEMENT Make Informed Decisions Collect Property Data in the Cloud Data Flow ALTUS CLIENT PLATFORM Single point of contact / view of assets – on a common web &
Slide 6: Growing Altus Analytics Revenues
Growing Altus Analytics Revenues 20% YoY Revenue Growth at Altus Analytics in 2016 $500 8% Total Revenue $443 M 4-Yr CAGR $450 $416 M $151M $400 $370 M $126 M $350 $324 M 10% Total Adj. EBITDA $91 M 4-Yr CAGR Revenues (C$ M) $300 $71 M $223 M $247 M $250 $194 M $182 M 74% of Altus Analytics $200 Rev
Slide 7: The Institutionalization of Commercial Real Estate
The Institutionalization of Commercial Real Estate Real estate investment allocation expected to reach 10.3% in 2017 Pension funds are leading institutional investors in invested real estate (up from 9.6% in 2015).1 assets.4 Global, investible commercial real estate market estimated to have reached
Slide 8: Information Services Model
Information Services Model Moving Towards Analytics Applications & Services Characteristics • Business models characterized by high margins, operating leverage, low capex and strong free cash flow • Proliferation of data and low computing costs driving demand for Big Data Analytics • Strong demand f
Slide 9: Altus Analytics Large & Addressable Market
Altus Analytics Large & Addressable Market Long Growth Runway with Greenfield Opportunity ► Total addressable market for real estate information and analysis estimated to be ~$11 billion* Increasing upselling and cross selling Same – more licenses/seats, more assets on New Clients Adding more client
Slide 10: Altus Analytics Growth Drivers
Altus Analytics Growth Drivers ARGUS Software Appraisal Management • Same customer revenue growth by: • Customers adding more assets on platform & increasing Converting legacy DCF users to ARGUS Enterprise frequency of valuations (pricing based on # of assets on platform) ~5,500 software clients +2,
Slide 11: Technology-Enabled Expert Services
Technology-Enabled Expert Services Modernization Through Technology • Leading provider of independent CRE advisory services • Services provide access to robust CRE data • Unparalleled insights and efficiencies provided by Altus Analytics • Pursuing investments in technology to leverage extensive pro
Slide 12: Financial Strength
Financial Strength Strong Cash Prudent Strong Financial Financial Strong Generation Financial Growth Flexibility Shareholder Management Returns 40% YoY increase to DSO as at Dec. 31, 2016 6.4% YoY revenue $43.7 M cash position 60% share price $67.2 m in cash from was 74 days compared growth in 2016
Slide 13: Appendix
CONNECTING THE GLOBAL REAL ESTATE MARKETPLACE TSX: AIF Appendix altusgroup.com For investor inquiries, please contact: Camilla Bartosiewicz Vice President, Investor Relations camilla.bartosiewicz@altusgroup.com 416-641-9773
Slide 14: Capital Markets Stats
Capital Markets Stats SECURITY SYMBOLS TSX: AIF, AIF.DB.A MARKET CAPITALIZATION $1.1 Billion SHARES OUTSTANDING 37.5 M Included in the S&P/TSX Composite RECENT SHARE PRICE ~$30.00 Index and the S&P/TSX Dividend Index 52-WEEK RANGE $33.50 / $19.15 3-MTH AVG. TRADING VOLUME ~100,000 QUARTERLY DIVIDEND
Slide 15: Financial Performance By Business Segment
Financial Performance By Business Segment Altus Analytics Year ended Dec. 31, Three months ended Dec. 31, In thousands of dollars 2016 2015 % Change 2016 2015 % Change 6% Revenues Recurring - Data & Software Subscriptions, YoY Revenue Maintenance $ 111,928 $ 90,735 23.4% $ 29,115 $ 26,194 11.2% Grow
Slide 16: Revenue Streams
Revenue Streams ALTUS ANALYTICS • ARGUS software tools for CRE portfolio & investment 74% of Altus • Industry valuation/ transactions standard management - for asset valuation, portfolio management, • Global footprint Analytics Revenues budgeting, forecasting, sensitivity analysis, etc. are Recurrin
Slide 17: Management Committee
Management Committee Robert Courteau Angelo Bartolini Liana Turrin Jim Derbyshire Colin Johnston Chief Executive Officer Chief Financial Officer General Counsel and President, Property Tax President, Research, Corporate Secretary Global Valuation & Advisory Canada Dave Gurnsey Terry Bishop Alex Prob
Slide 18: Board of Directors
Board of Directors RAYMOND MIKULICH, CHAIRMAN Mr. Mikulich currently serves as the Managing Partner and Chief Investment Officer for Ridgeline Capital Group, LLC, a real estate investment and asset management company, and the Chief Executive Officer of HomeLPC, LLC, a real estate investment company
Slide 19: Board of Directors
Board of Directors ERIC W. SLAVENS Mr. Slavens currently serves on the boards of NexGen Financial Corporation, an asset management company, Effort Trust Company, a financial services, real estate and asset management company, and Titanium Corporation Inc., an oil sands services and technology compan
Slide 20: Board of Directors
Board of Directors A.B. (SANDY) McARTHUR Mr. McArthur is the Consultant to the President of Morrison Hershfield. His past appointments include Chairman of Morrison Hershfield, President and Chairman of Fluor Daniel Canada, Senior Vice President and General Manager, Chemicals and Petroleum Business U