Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q4 2021 Earnings Presentation
39 slides from Fiera Capital Corporation Class A's earnings presentation, Feb 25, 2022
Slide 1: Q4 2021 Results
February 25, 2022 Q4 2021 Results
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements relating to future events or future performance and reflecting management’s expectations or beliefs regarding future events including business and economic conditions and Fiera Capital’s growth, results of operations, p
Slide 3: Conference Call Participants
Conference Call Participants Jean-Philippe Lemay Global President and Chief Executive Officer Lucas Pontillo Executive Vice President and Global Chief Financial Officer 3
Slide 4: Topics for Discussion
Topics for Discussion Q4 2021 Highlights Distribution Performance Investment Platform Private Markets Public Markets Financial Performance 4
Slide 5: Q4 2021 Highlights
Q4 2021 Highlights AUM $7.5B increase ( 4.1%) in Q4 2021 $188.3B as at $6.4B increase ( 3.5%) over the last twelve months Dec 31, 2021 Gross new mandates representing 5.1% of AUM achieved in 2021 Distribution Private Markets generated gross new mandates of 19.4% in 2021 Performance Public Mark
Slide 6: AUM Overview
AUM Overview Q4 2021 Flows ($B) AUM up $7.5B, or 4.1% o Mainly driven by favourable market impact and above benchmark investment performance across most strategies 2021 Flows ($B) AUM up $6.4B, or 3.5% Excluding the impact of strategic dispositions, Dec 31, 2020 AUM would have been $170.7B o C
Slide 7: AUM Growth Across Investment Platforms and Distribution Channels in 2021
AUM Growth Across Investment Platforms and Distribution Channels in 2021 Institutional ($B) Private Markets ($B) Financial Intermediaries ($B) Public Markets ($B) 1,2 Private Wealth ($B) 1,2,3 Distribution Channel AUM Institutional $6.2B, or 7.0% Excluding dispositions, Financial Intermediaries
Slide 8: Organic Growth Update: Not All About AUM
Organic Growth Update Not All About AUM Private Markets strategies generating growth and contributing to increase in total revenues AUM Organic Growth Q4 2021 2021 Data presented excluding AUM and revenues related to dispositions1 Private Markets ($B) 0.6 1.7 --- % change in AUM 4.0% 12.7% Public Ma
Slide 9: Institutional Highlights
Institutional Highlights 2021 Highlights AUM Net Organic Flow1 In C$ billions Canada Strong gross sales in 2021 across both Public and Private Markets investment platforms, partly offset by clients re-balancing due to market returns and strong relative performance U.S. Improved distribution mode
Slide 10: Financial Intermediaries Highlights
Financial Intermediaries Highlights 2021 Highlights AUM Net Organic Flow1 In C$ billions Canada Strong results across Public and Private market capabilities, an indication of the progress made in evolving our investor interaction model U.S. Realized sales of public equity capabilities while cont
Slide 11: Private Wealth Highlights
Private Wealth Highlights 2021 Highlights AUM Net Organic Flow1 In C$ billions Canada New advisory mandates won leveraging our strategic asset allocation capabilities Strong net organic revenue growth as a result of breadth of high performing diversified platform Allocation to private markets
Slide 12: Private Markets – A Catalyst for Growth
Private Markets – A Catalyst for Growth AUM of $15.9B, a 6.0% increase in Q4 2021 AUM1 ($B) Total Revenues1 ($M) Revenue growth of Private Markets surpassing its AUM growth AUM up $7.7B, or 94%, since December 31, 2018 3-yr CAGR of 24.7% $2.6B of subscriptions received in 2021 and $2.9B deployed C
Slide 13: Investment Performance Update
Investment Performance Update1 Select Private Markets Investment Strategies Return2 Gross IRR3 1-YR Q4 2021 Absolute (since inception) Absolute Return4 Return4 Real Estate Fiera Real Estate CORE Fund L.P. 9.24% - 5.36% 19.18% Fiera Real Estate Small Cap Industrial Fund L.P. 15.12% - 7.68% 25.53% Inf
Slide 14: Percentage of Public Markets Assets Outperforming at Quarter-End
Percentage of Public Markets Assets Outperforming at Quarter-End Fixed Income One Year Three Years Five Years Equity One Year Three Years Five Years Percentages exclude AUM in segregated accounts managed on behalf of private wealth clients, discretionary accounts, Asia-based accounts, private altern
Slide 15: Investment Performance Update
Investment Performance Update1 95%+ of Public Markets AUM beating benchmarks over 3 years2 Key Public Market Q4 2021 1-Year 3-Year Investment Strategies1 Added Added Added Return Return Return value Value Value Equity Investment Strategies Atlas Global Companies 8.07% 0.62% 20.78% 0.00% 29.82% 11.24
Slide 16: Total Revenues: Strong 2021 and Q4 2021
Total Revenues Strong 2021 and Q4 2021 ($M) Q4 2021 Total Revenues of $241.9M, $73.3M, or 43.5%, compared to Q4 2020 Q4 2021 Base Management fees of $162.6M, $23.8M, or 17.2%, compared to Q4 2020 Excluding the impact of dispositions in Financial Intermediaries and Private Wealth, Base Management
Slide 17: Private Markets Revenues
Private Markets Revenues Significant Increase in Transaction and Commitment Fees ($M) Q4 2021 Base management fees of $34.3M, $10.3M, or 42.9%, compared to Q4 2020 Driven primarily by favorable asset class mix and market appreciation in the real estate, infrastructure and private debt strategies
Slide 18: Public Markets Revenues
Public Markets Revenues Exceptionally Strong Performance Fees ($M) Q4 2021 Base management fees of $128.3M, $13.6M, or 11.8%, compared to Q4 2020 Driven primarily by Large Cap Equity investment strategies within the Institutional and Financial Intermediaries channels, and partly offset by lower U
Slide 19: Selling, General and Administrative Expenses (SG&A)
Selling, General and Administrative Expenses (“SG&A”) Revenues Growing Faster than SG&A ($M) 1 1 Note: SG&A presented excluding share-based compensation 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 Decembe
Slide 20: Net Earnings & Adjusted Net Earnings
Net Earnings1 & Adjusted Net Earnings1,2 Reconciliation of Q4 2021 Adjusted net earnings1,2 ($M) $0.34 per share basic $0.66 per share basic $0.31 diluted $0.58 diluted 1) Attributable to Company shareholders 2) Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA
Slide 21: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1 and Adjusted EBITDA Margin1 LTM Adjusted EBITDA Margin Trending Above 30% Quarterly Last Twelve Months 1) Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnings per share
Slide 22: Financial Leverage Continues Trending Downward
Financial Leverage Continues Trending Downward Funded Debt Ratio at 2.04x Net Debt1 ($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 consol
Slide 23: Returning Value to Shareholders
Returning Value to Shareholders $105.6M Returned to Shareholders in 2021 In 2021, 1.6M class A subordinate voting shares (“Class A Shares”) purchased and cancelled for total consideration of $17.9M Normal Course Issuer Q1 2021: 620,263 Class A Shares for total consideration of $7.1M Bid (“NCIB”)
Slide 24: 2021 Adjusted EPS Up 27.1% Compared to 2020
2021 Adjusted EPS Up 27.1% Compared to 2020 Dividend Increased in December 2021 ($ per share) 1 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
Slide 25: Progress on Our Strategy in 2021
Progress on Our Strategy in 2021 Private Markets AUM of $15.9B as at December 31, 2021 (3-yr CAGR of 24.7%) Solid conversion of capital from committed to deployed; continued fundraising Growing Private Markets momentum $2.6B in new subscriptions received in 2021; $2.9B deployed Solid long-term perfo
Slide 26: Appendix: Who We Are
<> FIERACAPITAL APPENDIX Who We Are
Slide 27: Fiera Capital Statement of Purpose
Fiera Capital Statement of Purpose World-class portfolio of high conviction, sophisticated investment capabilities: We are committed to delivering investment excellence across our range of public and private market strategies, which are underpinned by independence of perspective, disciplined process
Slide 28: Progressing our Mission and Purpose
Progressing our Mission and Purpose “We are passionate about creating innovative investment solutions by being efficient allocators of capital with the objective of fostering sustainable prosperity for all our stakeholders.” EFFICIENT CAPITAL ALLOCATOR Solutions ESG Solving for specific needs of our
Slide 29: What Being an Efficient Allocator of Capital Means for Fiera Capital
What Being an Efficient Allocator of Capital Means for Fiera Capital We allocate capital efficiently … … To construct optimized portfolios to deliver on client outcomes. 1 Our focus is on delivering the specific risk/return outcome the client needs with the highest probability of success. … To offer
Slide 30: Fiera Capital: A Values-Driven, Leading Independent Asset Manager
Fiera Capital A Values-Driven, Leading Independent Asset Manager FOUNDED 2003 ASSET MANAGER RANKING (by AUM) AUM C$188.3 billion1 SYMBOL (TSX) FSZ.TO 3rd 64th 141 st MARKET CAP C$992 million4 Canada2 North America3 Global3 Leading, independent asset management firm with a growing global presence and
Slide 31: Growing our Portfolio Through a Competitive Investment Offering
Growing our Portfolio Through a Competitive Investment Offering AUM ($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 32: Expanding our Global Footprint
Expanding our Global Footprint APPROXIMATELY 840 employees INCLUDING SOME 240 INVESTMENT PROFESSIONALS Calgary Halifax London Toronto Montreal Frankfurt Boston Dayton New York Hong Kong Singapore As at December 31, 2021 32 32
Slide 33: Revenue Diversification
Revenue Diversification 2021 Total Revenues – $749.9M By Geography By Distribution Channel1 By Asset Class2 Canada 53% Institutional 47% Equity 67% U.S. 25% Financial intermediaries 34% Fixed income 15% Europe and other 22% Private wealth 12% Private alternatives 18% Other 7% Liquid alternatives <1%
Slide 34: Underpinned by a Diversified Asset Base
Underpinned by a Diversified Asset Base AUM as at December 31, 2021 – $188.3B By Geography By Distribution Channel By Asset Class Canada 67% Institutional 51% Public Markets – 52% Equity U.S. 23% Financial intermediaries 41% Public Markets – 40% Europe and other 10% Private wealth 8% Fixed income Pr
Slide 35: 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 36: 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 $6.0B Real Estate $97.1B1 Small Cap, Emerging and Frontier Strategies $5.1B Private Debt $172.4B Canadian Active Universe Strategies $1
Slide 37: Glossary
Glossary AUM Net Organic Flow: Represents the sum of new mandates in Public Markets, new subscriptions in Private Markets, lost mandates, and the amount of inflows and outflows from existing clients, including return of capital and income distributions. Estimated Annualized Base Management Fee ($M):
Slide 38: Thank You
Thank You Investor Relations contacts: Marie-France Guay Mariem Elsayed Senior Vice President, Treasury and Director, Investor Relations Investor Relations mguay@fieracapital.com melsayed@fieracapital.com T 514 294-5878 T 514 954-6619 38
Slide 39: 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