27 slides from Fiera Capital Corporation Class A's earnings presentation, Aug 14, 2019
Slide 1: Q2 2019 Results
AUGUST 14, 2019 Q2 2019 Results VINCENT DUHAMEL Global President and Chief Operating Officer LUCAS PONTILLO Executive Vice President and Global Chief Financial Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements The accompanying Investor Presentation contains forward-looking information within the meaning of Canadian securities laws and regulations. Forward-looking information may include comments with respect to Fiera Capital Corporation's ("Fiera Capital") objectives, strategies
Slide 3: Q2 2019 Highlights
Q2 2019 Highlights Closed the acquisition of the 80% interest in Palmer Capital Partners ▪ Expands Fiera Capital’s real estate strategies and adds ~$740M in AUM Announced acquisition of Foresters Asset Management Inc. (expected to close in Q3) ▪ Expected to add ~$10.5B in AUM ▪ Fiera Capital’s total
Slide 4: AUM Growth
AUM Growth AUM (in $ millions) AUM up $4.6B from March 31, 2019 $2.3B in gross new clients in Q2 2019 ▪ $4.0B for the first six months of 2019 Lost mandates mostly from clients consolidating investment service providers or pursuing other asset classes Significant momentum maintained in equity market
Slide 5: Operations Overview
Operations Overview Canada U.S. Strong investment performance Strong pipeline of opportunities New strategies launched Scalable platform Closed the acquisition of Natixis’ Canadian Fiera Capital Emerging Markets Fund operations reached $2B in AUM Announced the acquisition of Foresters Bel Air AUM up
Slide 6: Private Alternative Investments
Private Alternative Investments Total alternative LIQUID PRIVATE investment strategies as at June 30, 2019 1 1 $12.9B (in $ billions) (in $ billions) FIERA PRIVATE ALTERNATIVE INVESTMENTS AUM $10.0B 1) Includes $1.0B of infrastructure fixed income. 6
Slide 7: Q2 Financial Performance
Q2 Financial Performance Q2 2019 Q2 2018 Δ% Revenues $149.9M $126.2M 19% EBITDA1 $25.0M $16.0M 56% Adjusted EBITDA1 $45.8M $32.7M 40% Adjusted EBITDA margin1 30.6% 25.9% 4.7% Adjusted net earnings1,2 $32.5M $23.8M 37% Adjusted net earnings per share1,2 $0.33 $0.26 27% Net earnings (loss)2 $(5.5M) $(
Slide 8: Revenue Trend – Quarterly & Last Twelve Months
Revenue Trend – Quarterly & Last Twelve Months Revenue (in $ millions) 8
Slide 9: Average BPS Evolution vs AUM
Average BPS Evolution vs AUM1 Q2 2019 average: 36.5 bps 1) Average basis points calculated as a function of base management fees. 9
Slide 10: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1,2 and Adjusted EBITDA Margin1,2 Adoption of IFRS 162 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
Slide 11: Adjusted EBITDA
Adjusted EBITDA1 (in $ millions) Q2 2019 vs Q1 2019 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 measu
Slide 12: Reconciliation of Net loss to Adjusted net earnings
Reconciliation of Net loss1 to Adjusted net earnings1,2 (in $ millions) Q2 2019 1 1,2 3 1) Attributable to the Company’s shareholders 2) Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA and adjusted EBITDA per share, adjusted net earnings and adjusted net earn
Slide 13: Optimizing the capital structure
Optimizing the capital structure… Q2 Highlights Announced maintaining the quarterly dividend at $0.21 per share going forward, until further notice ▪ Since becoming public in 2010, Fiera Capital’s annual dividend has grown at a CAGR1 of ~16% ▪ Dividend increased 13 times $100M bought deal offering o
Slide 14: Investment Performance Update
Investment Performance Update FIXED INCOME ▪ Integrated Fixed Income team delivered strong performance in Q2 BALANCED MANDATES ▪ Team’s overweight position in Canadian equities benefited balanced mandates, partly offset by being overweight in emerging markets EQUITIES ▪ Canadian and Global Equity te
Slide 15: Outlook
Outlook Expect reflationary policies from major central banks to revitalize global growth through the back half of 2019 U.S. economic outlook remains reasonably solid despite Fed’s cautious narrative 2022 Strategic Plan: Establish Fiera Capital as one of top 100 asset managers in the world ▪ Plan ro
Slide 16: Question Period
<> FIERACAPITAL Question Period
Slide 17: Appendix A: Additional Financial Information
Appendix A Additional Financial Information 17
Slide 18: AUM and Revenues Breakdown – by Geography
AUM and Revenues Breakdown – by Geography AUM as of June 30, 2019 YTD June 2019 revenues Canada 57% Canada 53% U.S. 32% U.S. 35% Europe and other 11% Europe and other 12% 47% of YTD 2019 revenues were generated outside Canada, compared to 30% in 2015 18
Slide 19: Year-over-Year AUM Growth
Year-over-Year AUM Growth (in $ millions) Acquisitions Clearwater Capital Partners (~$1.8B) – closed August 2018 80% interest in Palmer Capital Partners (~$740M) – closed April 2019 19
Slide 20: LTM Adjusted EBITDA and LTM Adjusted EBITDA Margin
LTM Adjusted EBITDA1,2 and LTM Adjusted EBITDA Margin1,2 Adoption of IFRS 162 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
Slide 21: Appendix B: Investment Performance
Appendix B Investment Performance 21
Slide 22: Investment Performance – Fixed Income
Investment Performance (June 30, 2019) Traditional Strategies – Fixed Income Annualized Rates of Return 5 YEARS OR BENCHMARK 1 YEAR INCEPTION YEAR SINCE INCEPTION1 NAME Return (%) Added Value (%) Return (%) Added Value (%) FIXED INCOME Active and Strategic Fixed Income - Active 7.11 -0.25 5.261 -0.0
Slide 23: Investment Performance – Balanced and Equity
Investment Performance (June 30, 2019) Traditional Strategies – Balanced and Equity Annualized Rates of Return 5 YEARS OR BENCHMARK 1 YEAR INCEPTION YEAR SINCE INCEPTION1 NAME Return (%) Added Value (%) Return (%) Added Value (%) BALANCED Balanced Core 8.94 3.26 7.98 1.75 1984 Balanced Core Blended
Slide 24: Investment Performance – Equity
Investment Performance (June 30, 2019) Traditional Strategies – Equity Annualized Rates of Return 5 YEARS OR BENCHMARK 1 YEAR INCEPTION YEAR SINCE INCEPTION1 NAME Return (%) Added Value (%) Return (%) Added Value (%) EQUITY INVESTMENT STRATEGIES Apex Large Cap Growth* 12.21 0.66 13.31 -0.09 2007 Rus
Slide 25: Investment Performance – Alternative Strategies
Investment Performance (June 30, 2019) Alternative Strategies Annualized Rates of Return 5 YEARS OR INCEPTION BENCHMARK 1 YEAR SINCE INCEPTION1 YEAR NAME Return (%) Return (%) North American Market Neutral Fund 1.84 3.32 2007 Absolute Return Long / Short Equity Fund 0.14 6.21 2010 Absolute Return Di
Slide 26: Mariem Elsayed, Investor Relations and Public Affairs
Mariem Elsayed Director, Investor Relations and Public Affairs melsayed@fieracapital.com T 514 954-6619 26
Slide 27: fiera.com
fiera.com > FIERA